FDH Financial Holdings Limited chairperson Noel Mkulichi has called on indigenous Malawians to buy shares in FDH Bank to ensure that ownership of the bank remains local.
Through the planned listing on the Malawi Stock Exchange (MSE) on August 3, FDH Bank is offering 1.38 billion shares at K10 each during the initial public offer (IPO) which closes on July 17. The shares represent 20 percent stake in the bank.
In an interview on the sidelines of a pre-listing cocktail in Lilongwe on Thursday, Mkulichi said they would want the bank’s shares to be bought by Malawians to keep up with its state of being a wholly-owned local bank.
He said: “Being a home-grown bank, we want everyone to be a participant, which is why we are offering 20 percent of shares to the local public, to ensure that they own the bank as opposed to having foreigners coming in and buy lots of shares in that regard.”
Mkulichi said they are hopeful that despite the Covid-19 pandemic affecting the economy, people still have money to buy the shares in the bank.
On his part, FDH Bank managing director Elias Ngalande said by buying shares, people will be investing for the future, adding that it is an investment that will pay off when one least expects it.
He said FDH Bank has a track record of being profitable and investors will recoup their returns.
Said Ngalande: “Why you should buy shares with us is that this is our country, so let us invest in it.
“We [as a bank] have strong governance structures and Malawians should trust us. When they invest their money in FDH Bank, it is going to be secure and generate profits.”
A customer, Gift Kawamba, who is also SeedCo Malawi commercial director, said FDH Bank resonates well with customers and the offer of shares is a golden opportunity.
He said the profitability of the bank over the years is assuring customers of better return on investment.
The listing of FDH Bank on MSE will enable the bank to comply with a contractual obligation with the Malawi Government as part of acquisition of wholly government-owned Malawi Savings Bank in 2015.
It will also help the bank to raise capital and allow existing shareholders to dispose of part of their stake in the bank.
FDH Bank is a subsidiary of FDH Financial Holdings Limited.