Malawi Stock Exchange (MSE) and market analysts have described Standard Bank plc’s share subdivision or share-split as a simplified way of making the stock affordable.
Standard Bank plc is the highest valued stock on the 16-counter market at K11 777.51.
Standard Bank plc shareholders approved the board’s proposal on share subdivision in a process that will ensure that additional or splitted shares are listed on MSE on July 21 2025.
In a letter addressed to shareholders, Standard Bank plc board chairperson Chris Kapanga said the company will proceed with share subdivision into five units.
Reads the letter in part: “By way of ordinary resolution, the shareholders resolved that the 234.6 million issued ordinary shares of the company be subdivided into 1. 17 billion ordinary shares of no par or nominal value.
“The approval by the shareholders of the resolutions pertaining to the subdivision of every one ordinary share of the company to five ordinary shares means that approval has been granted to the directors to proceed with the subdivision subject to securing the necessary regulatory approvals, including from MSE.”
This means after the completion of the process, the company’s shares will multiply by five from 234 million to 1.17 billion while the share price will be divided by five from the current price of K11 777.51 per share.
“This is the best option of making the high-valued shares at least affordable to low-income earners and it can also help in terms of liquidity on Standard Bank shares,” he said.
In an interview on Wednesday, MSE chief executive officer John Kamanga described the move as a simplified way of making the Standard Bank stock affordable.
“This is the best option of making the high-valued shares at least affordable to low-income earners and it can also help in terms of liquidity on Standard Bank shares,” he said.
Stock market investor and finance expert Brian Kampanje, in an interview on Wednesday welcomed the move, saying it will enable shareholders to cash in part of their stocks without losing out on shareholding while also giving an opportunity for others to invest in Standard Bank shares.
He said: “This will enable minority investors earn substantial income while holding sizeable number of shares.
“This will have a positive impact on the MSE as the number of issued shares rises and so will those changing hands. With neither initial dilution of shareholding nor requirement to pump in additional funds like in the case of rights issue, minority investors will be better off.”
Meanwhile, Minority Shareholders Association of Listed Companies Central Region chairperson Purity Chitalo said the decision is what the grouping has been lobbying for some time.
He said share-split will improve the availability of Standard Bank shares on MSE and preserve the value of shareholders in the company.
“We are excited that Standard Bank has acted accordingly,” said Chitalo.
Before the actual listing of the subdivided shares, according to the schedule, Standard Bank plc is expected to file a notice of amendments in respect of the conversion and subdivision at the companies registry on July 3.
The last day of the pre-split trading will be on July 15 and subdivision will be allocated to sellers on July 16 while the last day to register for the subdivision is July 18 before actual listing on July 21.
Standard Bank company secretary Norah Nsanja is on record as having assured shareholders that the changes will neither dilute shareholding of investors nor affect the company’s market capitalisation currently at K2.7 trillion, highlighting that the move will improve liquidity of the stocks by making them affordable.
“The proposed subdivision of shares will not alter any shareholder’s percentage ownership interest in the company’s issued shares,” said Nsanja in an earlier cautionary statement.
Standard Bank, a blue chip on MSE, is one of the five banks listed on the local shares market.
