Property firm seeks to raise K14.7bn, to list on MSE
Newly-formed property development and management firm, Icon Properties plc yesterday issued 1.68 billion shares through which it hopes to raise K14.7 billion through initial public offering (IPO) on the Malawi Stock Exchange (MSE).
IPO is the issuance of shares for the first time to the public by a company through the primary market.
Icon Properties plc director Vizenge Kumwenda told journalists yesterday in Blantyre that the shares, which will be going at K8.75 per share, represent 25 percent of the total value of the company.
The IPO, which officially opened yesterday, until December 28 2018, after which the firm is expected to list on the MSE in January 2019.
“An IPO is always a good opportunity to unlock the true value of a company, while at the same time giving investors an opportunity to make a decent return. At the same time, we wanted to give the public an opportunity to be owners.
“With as little as K50 000, one can become a shareholder in Icon. The timing is also perfect. Investing in the only IPO in a decade is a truly unique Christmas gift to oneself or family. So, we encourage you to forgo some of the Christmas shopping to invest in the future,” he said, adding the funds to be raised will be used for the construction of a hotel and an office complex in Lilongwe.
The firm, which was born after restructuring property companies in the MSE-listed Nico Holdings group portfolio as well as through a collaborative process with other property investors, was incorporated in Malawi on June 4 2018 and converted to a public limited company on October 11.
Its shareholding comprises 16 firms with Nico Life Insurance Company Limited, Standard Bank Pension Fund and National Bank of Malawi Pension Fund, owning 63.17 percent, 10.33 percent and 7.8 percent, respectively.
In an interview, minority shareholders general secretary Frank Harawa welcomed the development, saying the move will allow Malawians to participate in the development of the economy through their activities at the stock market.
Icon Properties has 35 properties valued at K50.04 billion with a total lettable area of 72 630 square metres.
Some of its properties are the Chichiri Shopping Mall in Blantyre, Lilongwe City Mall, which houses Game Stores, and Kang’ombe House in Lilongwe.
Interested investors can obtain application forms and the prospectus from the receiving banks—NBS Bank and Standard Bank as well as at all stock broking firms. n
