Homegrown FDH Bank has announced that it will list on the 15-counter Malawi Stock Exchange (MSE) in August this year subject to MSE and Reserve Bank of Malawi, (RBM) approval.
In a statement issued yesterday, FDH Bank managing director Elias Ngalande said the listing is meant to raise capital and allow existing shareholders dispose part of their stakes besides fulfilling the contractual obligation made during the purchase of the then wholly government-owned Malawi Savings Bank (MSB).
Reads the statement in part: “August 2020 will be commemorated as the beginning of a unique opportunity for Malawians to own a part of a truly Malawian bank.
“At FDH Bank, we believe partnership builds better business and we strive to create innovative and modern ways to succeed. With a solid vision and strong principles, we invite the people of Malawi to share in our growth and be part of our continued journey to success.”
During the year-ended December 31 2019, FDH Bank—a subsidiary of FDH Financial Services Limited—posted an after-tax profit of K7.84 billion, up from a profit after-tax of K5.96 billion in 2018, representing 32 percent growth while total income also grew by 18 percent from K29.066 billion to K34.389 billion.
Reacting to the announcement, MSE chief executive officer John Kamanga expressed optimism, saying the listing would create a wide array of securities in which investors can place their funds.
He said the MSE and RBM are currently reviewing the bank’s submission of documents, especially the application and will advise the bank on the way forward upon completion of the review.
FDH Financial Holdings Limited is 40 percent owned by Old Mutual plc, 55 percent by M Development and five percent by employees.
Earlier this year, the local shares market welcomed on board Airtel Malawi after successfully offering to the public 2.2 billion shares at K12.69 each through an Initial Public Offer which was over-subscribed by 34 percent. n