MSB to list on MSE in three years—FDH
FDH Financial Holdings Limited, a financial services group that has bought 75 percent stake in the previously wholly State-owned Malawi Savings Bank (MSB), has assured Malawians that it will list the bank on the Malawi Stock Exchange (MSE) by the end of three years.
The group’s chief executive officer Thom Mpinganjira said in an interview they are not worried that the bank is in financial turmoil, saying in the next two years, the situation will get worse as they try to clean up the mess.
“As you know, we have made an undertaking that by the end of three years, we are going to take this bank [MSB] to the Malawi Stock Exchange [MSE]. And by that time, it means that Malawians will have the opportunity from the streets to invest in a bank that they will not recognise in three years time,” he said.
For a company to list on the 14-counter MSE, it has to meet a number of requirements such as a satisfactory audited profit history for the preceding three financial years, a subscribed capital of at least K250 million ($555 556) and not less than 30 million equity shares on issue.
“I am looking forward to making Malawians proud. It will be the same Malawians who are making noise now, I know, who will want to get an opportunity to get into that bank [by buying shares],” he said, adding that the future of MSB is in its wide network.
The Malawi Government has offloaded 75 percent to FDH Financial Holdings Limited, the parent company of FDH Bank, at K9.5 billion. Of the remaining 25 percent MSB shares, five percent is earmarked for the bank’s employees while government has retained 20 percent, which could be offered to the public through MSE.
Earlier, Public Private Partnership Commission (PPPC) chief executive officer Jimmy Lipunga said listing of the bank on MSE will be possible if the investor has transformational capabilities to unlock significant value of the entity.
The investor will also have to economically empower employees through the establishment of an employee share ownership scheme (Esop) of up to five percent and a possibility of an additional five to 10 percent through private placement, he said.
“In the case of MSB, government will consider allocating up to 10 percent to a broad based savings and investment cooperative as a component of Malawian participation and as a vehicle for savings mobilisation,” said Lipunga.
FDH Financial Holdings Limited is 55 percent owned by M Development Limited (MDL), a Malawi registered company, 40 percent Old Mutual (Malawi) Limited and five percent by employees.
