By Benadetta Chiwanda Mia:
Malawi Stock Exchange-listed Blantyre Hotels (BHL) plc, owners of Limited Protea Hotel by Marriott Blantyre Ryalls, has initiated its rights share offering today.
The offer, running from November 25 to December 6 2024, aims to raise K62.4 billion for completion of its Marriott Lilongwe Ryalls Hotel.
BHL Chairman Vizenge Kumwenda announced the offer during a shareholders’ cocktail event in Blantyre on Friday, when the company unveiled its prospectus.
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“This hotel is costing over $54 million. We are now seeking investments from individuals and institutions alike, encouraging them to apply for shares, thereby becoming co-owners of this venture,” Kumwenda said.
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He highlighted that the 180-room hotel, featuring the only 18-hole PGA golf course in Malawi, is set to attract international guests, boost foreign exchange earnings, and provide shareholders with significant returns.
“This is an opportunity to invest in dollar earning assets because at least 40 percent of revenue from our current hotel is dollar-linked,” Kumwenda said.
Currently, the hotel’s major shareholders are Nico Life Insurance Company, Africap LLC and Nico Holdings. The issuance of an additional 5,038,504,230 shares allows new investors to join as co-owners.
The initial offer targeted existing shareholders with a ratio of 6 shares for each existing share, priced at K12.38—below the current market value of K14.55 per share.
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Tourism Minister Vera Kamtukule highlighted the hotel’s potential to transform Lilongwe’s landscape and serve as a vital asset in the tourism sector, which the government recognises as one of the key drivers of economic growth.
“Construction is a sign that a country is on a path to development. I’m very excited that now it has been opened to the public, who can now participate in buying the shares,” Kamtukule said.
Personal finance management expert Audrey Mwala emphasised the importance of long-term investment in shares and infrastructure.
The rights offer will close on December 6, with shares slated for the Malawi Stock Exchange listing on December 16 2024. The facility, which sits on 3,272 hectares of land, is expected to be completed by December 2025, with an official opening in early 2026.
