Advertisement PAC COVID-19 Message
Advertisement
Uncategorized

FDH seeks to raise K13bn through IPO

Advertisement PAC COVID-19 Message

FDH Bank, a subsidiary of FDH Financial Holdings Limited, yesterday offered 1.3 billion shares through an Initial Public Offering (IPO) on the Malawi Stock Exchange (MSE).

Through the IPO—the issuance of shares for the first time to the public by a company through the primary market—the bank intends to raise about K13 billion.

The IPO was opened yesterday and closes on July 17 after which the bank would list on the stock market and the public will hold 20 percent of its equity stake.

Advertisement

Making the announcement in Blantyre, FDH Bank Managing Director, Elias Ngalande, rated the move as rare, saying the financial services sector remains one of the most attractive at the local bourse.

According to Ngalande, the listing intent is in line with the bank’s contractual obligation with the government as part of the Malawi Savings Bank acquisition.

He said the bank also intends to raise a new capital to support its growth strategy and allow other existing shareholders to dispose of part of their shareholding.

Advertisement

“It is important that as a Malawian bank, members of the public could have a stake. So it is important for us for financial inclusion and that everybody must feel that this is their bank,” Ngalande said.

In the past five years, the bank has recorded an average revenue growth of 19.2 percent per annum.

In the year ending December 31, 2019, the bank registered a post tax profit of K7.84 billion, up from a K5.96 billion profit registered in the preceding year.

Listing of the bank on the stock market would bring number of counters to 16.

In an interview last week, Minority Shareholders Association General Secretary, Frank Harawa, welcomed the bank’s listing intent, rating it as ideal.

“We are very happy about it. Shareholders will be assured that it will be a good company to list on the stock market,” Harawa said.

Shareholders in the bank’s parent company, FDH Financial Holdings Limited, include M Development Limited which holds 55 percent, Old Mutual (Malawi) Limited with a 21 percent equity stake, Old Mutual Life Assurance Limited which has 19 percent equity an FDH ESOP Limited which holds 19 percent shares.

Advertisement faith leaders
Tags
Show More
Advertisement

Related Articles

Back to top button
Close
Close

Adblock Detected

Please consider supporting us by disabling your ad blocker