FDH speaks on share allotment

FDH speaks on share allotment

Post was last updated: August 14, 2020

FDH Bank, which recently listed on the Malawi Stock Exchange (MSE), says individual investors were given preferential treatment and have been allotted all shares they applied for.

In a share allotment update, FDH Bank Managing Director, Ellias Ngalande, says the move is part of the financial inclusion drive.

The announcement comes following a 2.1 percent oversubscription of shares during the Initial Public Offer period, where 1.38 billion shares were offered but 1.41 billion shares were applied for at a value of K14.1 billion.

On August 3, FDH Bank listed on MSE to become the sixteenth counter and fifth bank on the local bourse.

In the statement, Ngalande says objective of the bank’s listing was to ensure financial inclusion and wide ownership by members of the public.

“Retail investors were allotted the full number of shares they applied for to ensure financial inclusion and wide ownership of the bank by the public in fulfilment of one of the objectives of the listing,” reads the statement.

He said electronic version of the allotment letters have been emailed to the investors and hard copies were sent by post.

Speaking after listing of the bank, Public Private Partnership Commission Acting Chief Executive Officer, Audrey Mwala, said entry of FDH Bank on the stock market entails a significant step on the path of financial inclusion.

She then urged Malawians to participate in activities on the capital market as a way of inculcating savings and investment culture.

Following the listing, FDH Financial Holdings Limited holds 74.05 percent, Malawi Government holds 4.75 percent, MSB Employee Share Ownership Scheme has 1.2 percent and the public has 20 percent stake.

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