Malawi Stock Exchange expects new listing in second half

post was last updated: July 11, 2019

By Taonga Sabola:

John Kamanga

The Malawi Stock Exchange (MSE) has said it expects a new listing in the second half of this year.

The development would bring the number of companies joining the market to two after Icon listed in January this year.

MSE Chief Executive Officer, John Kamanga, said they have received an application from a telecommunications company which is interested in joining the fray.

If it materialises, it would bring the number of telecommunications firms on the market to two after TNM which listed in 2008.

Kamanga could, however, not reveal the identity of the company, saying the MSE would do so at a later stage.

“Currently, we are reviewing the application before we send it to the Reserve Bank of Malawi (RBM) for final approval. If all goes well, we expect the listing this year,” Kamanga said.

Currently, the MSE, which started its operations in 1996, has 14 listed counters, namely Nico Holdings Limited, National Bank of Malawi, Standard Bank, NBS Bank, FMB Capital Holdings Limited, Mpico, Old Mutual, Illovo, Sunbird, Press Corporation Limited, Icon, TNM, National Investment Trust Limited and Blantyre Hotels Limited.

The MSE ended its 10- year listing drought in January following the listing of Icon.

Analysts have blamed the limited participation of firms on the MSE to fear of the unknown.

In an interview with CNBS Africa Wednesday, Stock Brokers Malawi Chief Executive Officer, Noel Kadzakumanja, said he sees two initial public offers this year.

“I have two IPOs in mind but I would not be able to mention the names. They are from the telecommunication and banking sector,” Kadzakumanja said.

The local bourse remained bullish in 2018 and during the second half of 2019, as reflected in the positive return of the Malawi All Share Index (Masi).

In 2018, number of shares traded on the stock exchange increased to 958 million from 699 million in 2017.

This translated into an increase in the value of shares traded to K48.7 billion in 2018 from K13.5 billion in 2017.

Total market capitalisation, however, declined and closed at K1, 284.7 billion in 2018 from K10, 609.5 billion in 2017.

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