Continental Holdings (CHL) plc, the parent company of CDH Investment Bank and other financial services firms, yesterday listed on the Malawi Stock Exchange (MSE) to become the 17th counter with the share rising to K350 from the Initial Public Offering (IPO) price of K195 per share.
The listing ends the six-year drought on the stock market after the last listing of FDH Bank plc in August 2020.
CHL’s IPO saw 701.8 million shares valued at about K135.4 billion bought, representing 93 percent subscription rate, with all valid applications allotted shares in full.
The shares, offered at K195 each during the IPO, rose to K226 by noon and closed the day at K350 per share.
The listing also expands public ownership of the financial services group after majority shareholder TransAfrica Holdings Limited offered a 25 percent stake to the public, but 23.29 percent was taken up, bringing more than 10 000 individual and institutional investors into the company’s shareholder base.
Speaking at the listing in Blantyre, CHL plc chairperson Gibson Ngalamila said the milestone marked a significant stage in the group’s growth since it invested in Malawi in 1998.
“We are excited with the listing today and it marks a big milestone in our growth, creating value for our shareholders, supporting clients, empowering employees and contributing to national prosperity,” he said.
CHL Group chief executive officer Robert Abbey added that “the strong participation by individual investors reflects growing investment awareness and confidence in our track record and future potential”.
Reserve Bank of Malawi Deputy Governor responsible for economics and regulation Henry Mathanga said the listing was a sign of investor confidence in Malawi’s financial sector and regulatory framework after six years without a new listing.
On his part, Minority Shareholders Association of Malawi general secretary Frank Harawa, in an interview, welcomed the listing, saying the early movement in the share price was encouraging, urging investors to remain mindful of risks facing the banking sector.
“We are really excited because there has been a long drought and now here we are,” he said.
Meanwhile, MSE chief executive officer John Kamanga said the successful completion of Continental Holdings plc IPO and its admission to the stock exchange marks the beginning of a new era that is characterised by broader ownership, greater accountability and enhanced opportunities for sustainable growth.
“The patient capital raised through this IPO will help TransAfrica Holdings to finance its future investment plans, innovation, employment creation, productivity and lasting economic growth,” he said.
In CHL, the public has 23.29 percent equity out of the 25 percent offered while majority shareholder Trans Africa Holdings has reduced its stake from 61 percent to 34.35 percent while Press Trust has increased its holding from 14.4 percent to 17.8 percent.
The Employees Share Ownership Programme has been allotted 9.98 percent and other minority shareholders pre-IPO hold 14.58 percent with the unsubscribed 51.4 million shares valued at K10 billion allotted to underwriters.
