FDH Bank (Financial Holdings Limited), had yesterday offered 1.3 billion shares through an Initial Public Offering (IPO) on the Malawi Stock Exchange (MSE).
Through the Initial Public Offering, 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.
Making the announcement in Blantyre, FDH Bank Managing Director, Elias Ngalande, rated the move as rare. 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.
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.
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.