Icon ends Malawi Stock Exchange 10-year drought

Post was last updated: January 22, 2019

By Taonga Sabola:

Property ownership firm, Icon Properties, Monday broke Malawi Stock Exchange (MSE) 10-year listing drought when it registered on the bourse.

The listing of Icon has brought the number of listed firms on the market to 14.

Soon after listing on the market, Icon share prices surged by 37.14 percent from an IPO price of K8.75 to K12.

As at 11 am Monday, a total of 3.39 million shares changed hands in early morning trading.

Cedar Capital Chief Executive Officer, Armstrong Kamphoni, said the excitement generated by Icon listing shows that the market has an enormous appetite for new companies.

“It is great news for shareholders as it means that their investment has already started growing,” Kamphoni said.

Icon raised a total of K14.7 billion by offering 1.68 billion shares during an initial public offer which closed on December 28.

MSE Chief Executive Officer, John Kamanga, said listing on the local bourse results in, among other benefits, increased operational efficiencies, efficient process of raising capital as well as improvement in governance, transparency and accountability.

“Icon Properties has, therefore, made the right choice in joining the family of companies that aim at being more open and transparent to their shareholders, the public and government.

“We, at MSE and the capital markets at large, are generally proud of our history and performance of listed companies to date as we provide a ready and regulated access to the capital market,” Kamanga said.

Icon Properties Director Vizenge Kumwenda, said the firm plans to invest the money in Iconic properties such as hotels and office complexes.

Icon Properties was incorporated in Malawi on June 4, 2018 and converted to a public limited company on October 11.

Icon has 35 properties valued at K50.04 billion.

Some of its properties are the Chichiri Shopping Mall in Blantyre, Lilongwe City Mall, which houses Game Stores, and Kang’ombe House in Lilongwe.

Reserve Bank of Malawi Governor, Dalitso Kabambe, hailed Icon for the listing.

He said globally, a stock market is where people raise capital cheaply for businesses, saying this has to be done for Malawi as well.

“We look forward to more new listings,” Kabambe said.

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