Blantyre Hotels (BHL) plc has listed its rights shares on the Malawi Stock Exchange (MSE) with experts describing it as proof of the market’s capacity to raise long-term capital after the company mobilised K60 billion.
The listing yesterday followed a successful rights issue, a process where the company raised K62.4 billion through both institutional and individual investors, to complete its new hotel project in Lilongwe.
Speaking during the listing, MSE chief executive officer John Kamanga said one foreign institution, five local institutions, 12 pension funds and 4 745 retail investors participated in the rights issue.
He said: “Today, as we celebrate the listing of Blantyre Hotels rights issue shares, we also celebrate the growth and maturity of our capital market. This listing deepens our equity platform and enhances market liquidity.”
Kamanga said through the rights issue, BHL has raised in excess of K60 billion at a cost of about four percent, highlighting the market’s potential to raise patient capital at low cost.
The exercise has resulted in an increase in the number of shareholders from 270 to 4 763, including 4 754 retail investors, according to Kamanga.
“To our 4 745 retail investors, your participation is a remarkable demonstration of confidence and trust in BHL’s future and Malawi’s economy. Individually, your contributions may seem small, but collectively, they form a transformative force,” he said.
BHL board chairperson Vizenge Kumwenda was delighted to have seen the exercise successfully raising the capital needed to complete its Lilongwe Ryalls Hotel project.
He said: “The reception has been very good; we have raised all the money that we are looking for, K62.4 billion. And out of that K22 billion has come [from] new shareholders that include the public.
“Before this rights issue BHL had less than 400 shareholders, but now we have over 4 700 shareholders and this is a reflection of the success of the rights issue.”
Kumwenda said the four star 180-bed golf estate hotel, situated on the Lilongwe Golf Club course, is now poised for completion in the coming months after raising the required capital.
The initial public offer for rights shares was K12.38 per share but as of Monday before listing the new shares, BHL shares traded at K14.55.
