Standard Bank speaks on role in capital raising

Standard Bank speaks on role in capital raising

Post was last updated: March 16, 2020

By Frank Phiri, Contributor:

KONDOWE—We have excellent understanding of investment landscape

Malawi Stock Exchange (MSE)-listed, Standard Bank Plc has said it is well-positioned to support capital raising need for various corporate entities in Malawi, as it has deep understanding of the capital markets and sector expertise.

Standard Bank Malawi Head of Investment Banking, Enock Kondowe, said the bank has expertise to support clients in a range of capital raising solutions, including equity issuances on the stock market.

Kondowe was speaking following the recent Airtel Malawi Plc Initial Public Offering (IPO) deal in which the bank was lead transaction adviser, transfer secretary and receiving bank.

According to Kondowe, at K27.92 billion, this is Malawi’s largest IPO to date. Under the IPO, 1.65 billion shares were offered for sale for K20.94 billion with an over-allotment option of K6.98 billion (550 million shares).

Kondowe highlighted that it is exciting to see that the IPO was oversubscribed by 34 percent with a total raise of K28.01 billion and the over-allotment option was fully exercised allowing for local investors the opportunity for greater participation up to the regulatory set limit of 20 percent in compliance with the Communications Act 2016.

“Standard Bank supports its customers by acting as a trusted investment adviser to support their capital and funding needs. We are not just supporting corporations to raise capital but also developing the capital markets by providing more alternative investment homes for both retail and institutional investors to place their funds,” Kondowe said.

The Airtel IPO saw a total of 8,067 subscribers where 85 percent were retail investors and 15 percent were institutional investors.

In addition,4,573 of the total subscribers applied through Airtel Money. “We are pleased to pioneer the first-ever IPO to use a digital platform to reach out to subscribers and enhance financial inclusion by allowing retail investors without bank accounts in rural areas to participate. We expect digital platforms to play a role growing the participation of retail investors on the stock market,” Kondowe said.

He ties the bank’s capabilities in handling advisory and capital raising solutions to its legacy in the industry and the continental footprint.

“With a legacy of over 50 years of doing business in Malawi and a geographical footprint across 19 African countries, Standard Bank has an excellent understanding of the Malawian and African investment landscape.

Our Pan African reach also gives us an advantage as we are able to tap into world class institutional knowledge and expertise to deliver impactful solutions to our clients,” he added. Standard Bank, which was listed on MSE on June 29 1998, became the first commercial bank to trade its stocks on the bourse. The MSE has four commercial banks in total.

The Airtel Malawi listing brought to 15 the number of companies listed on the local stock exchange.

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