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FDH Bank listing to boost Capital Market growth

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FDH Financial Holdings has said the listing of its subsidiary, FDH Bank, on the Malawi Stock Exchange (MSE) would help boost the development of the country’s Capital Market.

FDH Financial Holdings Chairperson, Noel Mkulichi, was speaking in Lilongwe during a stakeholder engagement meeting the bank held to enlighten investors on the bank’s Initial Public Offer (IPO) currently underway.

Mkulichi said the development of capital market is always linked with economic growth and development which is the primary objective of all countries, including Malawi.

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“It is quite evident that demand for investment in equity remains high as investors seek higher long term investment returns. According to market statistics, as at 31 December 2019, Pension Fund Assets grew by 22.5 percent to close the year at K878.1 billion. Of these funds 47.4 percent was invested in listed equity. Also worth noting is that total assets managed by the Fund Managers as at 31 December 2019 stood at K1.3 trillion of which 41 percent was also invested in equity.

“This is a clear indication that demands for listed equity is high. Currently there are only 15 companies listed on the Malawi Stock Exchange and so the listing of FDH Bank will add on to the available investment opportunities on the market allowing investors to diversify their investments on the equity market,” Nkulichi said.

He said the bank is committed to continue delivering excellent customer service and providing relevant and customer-centred financial solutions to facilitate the growth of customers, communities, and the country.

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Mkulichi said the FDH Bank IPO offers an unrivaled investment opportunity that will create value to all shareholders, both old and new.

He observed that through the IPO, the bank is fulfilling an important obligation it had with the Government of Malawi at the acquisition of Malawi Savings Bank in 2015 to dispose of the remaining government stake in FDH Bank by way of listing and allow members of the public to participate in its shareholding through the Malawi Stock Exchange.

He observed that the IPO would allow other shareholders to dilute their shareholding and also raise additional capital for future growth of the bank.

FDH Bank was established in 2008 and has over the years grown into Malawi’s leading digital bank which champions financial inclusion with cutting edge digital solutions.

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