Malawi Stock Exchange in negotiations with potential entrant
The Malawi Stock Exchange (MSE) has revealed that negotiations are at an advanced stage with a local company that has shown interest in listing on the stock market.
MSE Chief Executive Officer, John Kamanga, told The Daily Times that, they are scrutinising the documents in perspective of listing requirements and are expected to list the company by next month.
However, Kamanga could not reveal the name of the company stressing that they are under a confidentiality obligation until the company, is listed.
“It’s true, we are now in negotiations with one of our potential companies and this is basically on the debt side whereby they are trying to raise capital, they are issuing a debt to the general public,” Kamanga said.
He further said the general public would soon be informed on the release of the documents as well as the company.
Kamanga was optimistic that one of the 2018 strategies of the Reserve Bank of Malawi (RBM), which is to have five new companies join the bourse this year, will be achieved based on the response they are getting from prospective companies.
In an earlier interview, RBM Governor, Dalitso Kabambe, said that, in conjunction with the MSE, the central bank has been talking to some 120 companies on the benefits of raising capital through the stock exchange—most of which, are preparing themselves for the same.
“The problem with most of the companies in Malawi [is that] they prefer to remain family dominated companies and, therefore, in many cases the senior positions are shared by family members and it is difficult to attract public offers and shares.
“We are, therefore, asking companies to restructure and organise themselves to be legit for listing. We believe that a number of companies will be listing on the Malawi stock Exchange this year,” Kabambe said.
This comes against the background of a nine year listing drought experienced on the stock market that came to an end last year when the bourse listed Mauritius registered FMB Capital Holdings in September.