Advertisement
Business

NBS Bank readies to offer shares for rights issue

Advertisement

NBS Bank will from May 29, 2017 start offering its shares under the rights issue to its existing shareholders.

A rights issue is an invitation to a company’s existing shareholders that entitles them to buy additional shares directly from the company in proportion to their existing holdings within a fixed period.

The bank is offering about 2.1 million additional shares at a discounted price of K5.40 per share to its existing shareholders.

Advertisement

Currently, NBS shares are trading at K6 per share on the Malawi Stock Exchange.

The rights issue issuance is meant to help in the recapitalisation of the bank and bring it back to profitability.

According to CDH Investment Bank Limited, legal advisors of NBS, the offer will run up to June 28, 2017.

Advertisement

Addressing journalists in Blantyre on Wednesday, CDH Investment Bank Chief Investment Banking Officer Thoko Mkavea said the shareholders have a full month to make a decision on whether to increase their shareholding capacity or not.

Mkavea said the resolution by the shareholders was to raise a minimum of K10 billion, but that an assessment requirement which has just been completed shows that the bank needs K11.8 billion.

“The amount raised will be used by the bank in its regular business and obviously, they will lend and expand more and in turn make more profits.

“This money will release value out of the bank to the benefit of the shareholders and the customers,” he said.

NBS Bank Chief Executive Officer Kwenele Ngwenya said after the rights issue is completed, the bank will reinvest the capital into the business.

“We will invest in different distribution channels so that our customers can do business in the comfort of their own environment without really worrying about time and where they are.

“We want to take the bank to the people and be everywhere,” Ngwenya said.

Facebook Notice for EU! You need to login to view and post FB Comments!
Advertisement
Tags
Show More
Advertisement

Related Articles

Back to top button
Close

Adblock Detected

Please consider supporting us by disabling your ad blocker