Blantyre Hotels Limited (BHL) successfully listed its fully subscribed rights issue shares on the Malawi Stock Exchange (MSE) on Monday, raising a record K62.4 billion to complete its ambitious Lilongwe Ryalls Hotel project.
The rights issue has dramatically transformed BHL’s shareholder base, expanding from about 270 to over 4,700, representing a 1,640 percent growth.
It has transpired that of the total amount raised, K22 billion came from new shareholders, including retail investors from the general public.
During the bell ringing event, BHL Board Chairperson Vizenge Kumwenda said having raised all the money they were looking for, with the project being at an advanced stage, prospects of completing it by December 2025 were high.
“We have gone into what we call the finishing phase and, in the coming months, we should complete the hotel. This hotel will offer employment to Malawians—which is happening even now, when it is under construction— will offer a market to farmers who produce various foods such as vegetables and fish and will help generate forex for Malawi.
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“Even under conservative assumptions, the project is expected to deliver healthy profits and dividends. The hotel’s unique positioning as a forex-earning enterprise also offers shareholders protection against currency devaluation risks,” Kumwenda said.
He added that the rights issue and the project in general were aligned with Malawi’s Agriculture, Tourism and Mining Strategy.
MSE Chief Executive Officer John Kamanga highlighted the significance of the rights issue, noting that it was the largest amount ever raised on the MSE equity platform, with remarkably low costs of about 4 percent.
He said the successful raise saw strong participation of both institutional and retail investors, with local institutions contributing 67 percent of the total amount.
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“This listing deepens our equity platform, enhances market liquidity and provides an additional quality investment avenue for Malawians,” Kamanga said.
The development comes amid strong performance of the MSE in 2024, with the Malawi All Share Index achieving an impressive year-to-date return of 52.43 percent, equivalent to 47.98 percent in United States dollar terms.
Kamanga added that nine out of the 16 listed companies had recorded positive real capital appreciation returns exceeding the inflation rate of 27 percent.
The Lilongwe Ryalls Hotel project, with a total cost of $56 million, will feature 180 rooms and positions itself as a golf resort hotel, targeting high-net-worth international tourists.
This strategic positioning is expected to generate foreign exchange earnings for Malawi while creating substantial employment opportunities and boosting agricultural markets.
