FMB Capital Holdings plc (FMBCH) has issued additional share capital of K8.54 billion (about $11.5 million) through the issue of 122 million ordinary shares to enhance the group’s ability to grow.
The additional capital further augments the Malawi Stock Exchange (MSE)-listed parent company First Capital Bank’s regulatory capital and will be used to fund short to medium-term growth initiatives across the group, according FMBCH plc managing director Dheeraj Dikshit.
MSE has since approved the admission of additional 122 million FMBCH shares to its official list.
The additional shares represent 4.96 percent of the enhanced share capital of the group and there has been no change in control of the group as a result of the issue of the shares.
The share issue has increased the free float of public shareholders of the group and has added to the breadth and diversity of its shareholder base.
In an interview on Friday, Dikshit said: “The additional capital will enhance the group’s ability to grow and solidify our position as a leading banking group in the southern Africa region.”
FMBCH, incorporated in Mauritius, has a controlling interest in banks which operate as First Capital Bank in Malawi, Botswana, Zambia and Zimbabwe and as Capital Bank in Mozambique.
The banking group, which was founded in Malawi in 1995 as First Merchant Bank, has assets in excess of $1.1 billion (about K806 billion).
FMBCH, which listed on the local bourse on September 18 2017, closed the trade at K100 per share at MSE on Friday and is worth K233 billion in terms of market capitalisation.