Ecama touts new listings - The Times Group Malawi

Economics Association of Malawi gives high praises to Malawi Stock Exchange

Post was last updated: July 13, 2020

The Economics Association of Malawi (Ecama), has spoken highly of the Malawi Stock Exchange (MSE), saying given its recent track record, the local course could contribute heavily to the national economic development.

Ecama feels continue listing by firms on the capital market and efficiency of the market would spar wealth creation among Malawians buying stakes in the various firms.

The optimism comes as FDH Bank recently offered 1.4 billion shares through an Initial Public Offer (IPO) on the stock market at K10 per share.

The bank would become third to list on the market within two years after Airtel Malawi plc and Icon Properties plc.

Icon Properties ended a 9-year listing drought on the stock market in January 2019.

In an interview, Ecama president, Lauryn Nyasulu, said efficiency of the capital market would play a pivotal role in economic development.

“It also encourages broader ownership of productive assets by small savers. It enables them to benefit from economic growth and wealth distribution and provides avenues for investment opportunities.

“Listing of FDH Bank is an opportunity to contribute to the development of the capital market in Malawi. It therefore, presents opportunities for economic growth and development,” Nyasulu said.

In a recent interview, FDH bank’s Managing Director, Elias Ngalande, said the bank intends to raise about K13 billion from the IPO.

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.

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.

Listing of the bank on the stock market would bring number of counters to 16.

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