Newly-Malawi Stock Exchange (MSE)-listed FMB Capital Holdings (FMBCH) director Hitesh Anadkat has assured shareholders that positioning itself in an advanced capital market such as Mauritius will better place the company to raise capital at competitive rates.
Speaking exclusively to Business News a few days after listing on MSE Anadkat said being positioned in a market such as Mauritius means that the bank’s business will have greater access to the capital it will require to grow, to the benefit of investors, employees and communities.
“Malawian shareholders would be among those benefitting the most from the listing. No firm decision has yet been taken as to when and where exactly we will seek a dual listing for FMBCH but the likelihood, at this stage, is that, if this does happen, it will be in Mauritius, where the company is registered,” he said.
Anadkat said under a dual-listing scenario, shares would be transferrable between the two exchanges which would avoid the possible development of a ‘discounted market’ in Malawi and disadvantage local shareholders.
“A foreign listing would also raise our profile and attract new, international investors and customers,” he said.
Shares in FMBCH began trading on the Malawi Stock Exchange (MSE) on Monday where shareholders of FMB were offered one FMBCH share for each FMB share held.
During the listing, the shares traded at K45.01 and recorded a traded volume of 20.325 and a market capitalisation of K102 634.54 billion.
MSE chief executive officer John Kamanga said the primary listing of FMBCH at MSE and secondary listing at Mauritius Stock Exchange provides opportunities in terms of diversity as it will be in a position to raise foreign capital in other foreign exchanges and portfolio inflows in the sense that dividends will be locked in dollar terms.
But while highlighting that economic outlook in the various markets in which it operates would remain challenging, the group is however upbeat that growth in profitability in 2018 is expected on the assumption that acquisitions, including that of an effective 52.6 percent interest in Barclays Bank Zimbabwe, which still awaits some regulatory approvals, will be completed by the end of 2017.
Meanwhile, there is still a window till October 6 for investors who have not responded to the exchange offer to do so.