MSE revises listing rules

The Malawi Stock Exchange (MSE) on has revised some of its listings requirements in a bid to reach out to more potential companies.

Among others, MSE has reduced the time-frame for publishing abridged financial results from six to four months and reduced capital requirements for a company from K500 million to K400 million.

MSE has also reduced profit history from three years to two years while underwriting requirements have now become optional.

Confirming the development, MSE chief executive officer John Kanga said the main objective is to respond to public concerns on the level listings requirements.

He said: “We believe with the above changes, we will reach out to many potential companies who are in need of raising capital through the MSE.”

In 2020, MSE reviewed listing and trading requirements on the local shares market, a move meant to protect investors, maintain fair, orderly and efficient market, and facilitate capital formation.

The changes, among others, include review of clauses which contradicted the provisions of the Financial Services Act and the Companies Act.

The changes also reviewed minimum capital requirements for listing and enforcement of the listing requirements and opened access for foreign listed firms to be dual-listed on MSE.

Indigenous Business Association of Malawi (Ibam) president Mike Mlombwa welcomed the development, saying a number of local businesses have been skeptical to list on the shares market due to, among others, complex and high capital requirements.

He said:  “Businesses do have the urge to list on the shares market as we are quite informed and aware that the MSE is the best option for raising cheap capital.

“The process to list has, however, been thorny, especially on the capital requirement. It is, therefore, pleasing to note that the MSE has considered reviewing some of these issues to make the market more attractive to companies.”