Continental Holdings Limited has launched an Initial Public Offering (IPO), marking the first sale of its shares to the public ahead of planned listing on Malawi Stock Exchange (MSE) on August 3 as the bourse’s 17th counter.
MSE, market analysts and investors have hailed the move, saying it could ease pressure on the market and encourage other companies to follow suit.
In its pre-listing IPO statement on Wednesday, the group said the IPO is priced at K195 per share from June 30 to July 20 this year.
In an interview on Wednesday, MSE chief executive officer John Kamanga said the IPO means Continental Holdings Limited main shareholder TransAfrica Holdings is selling 25 percent of its 61 percent shareholding to the public, providing investment opportunity to the people.
“This is a proud moment for the Malawi Stock Exchange where we are fulfilling some of our strategic pillars of market growth,” he said.
Capital market analyst and investor Benedict Nkhoma described the listing as a significant milestone for the country’s capital market, observing that it will improve market depth, liquidity and investor participation.
He advised investors to analyse and understand the pre-listing statement, including dividend policy and profitability to make a meaningful decision.
“Investors should not be driven solely by the excitement of a new listing,” he said.
Stockbrokers Malawi Limited equity investment analyst Kondwani Makwakwa described the development as a significant milestone for the 16-counter MSE, six years after FDH Bank plc listed on the shares market on August 3.
Continental Holding Limited owns CDH Investment Bank, Continental Asset Management, Continental Capital, Continental Properties, Continental Pension Services, CDH Commodities and Continental Asset Management.
