TNM plc shares have surged on the local bourse, Malawi Stock Exchange (MSE) soaring 50 percent within a month from K23.04 to K34.50 per share bringing fresh hopes to investors after a period of stagnation.
According to MSE trading reports, TNM shares which traded at K23.04 on June 13 2025 after months of stagnation since the 2023 devaluation affected its profits, gained 30 percent to K29 per share by June 30 and later added another 19 percent to K34.50 this week.
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Market analysts have since attributed the share price jump to the company’s projection that its half-year profit will increase by 266 percent K8 billion and the successful recapitalisation that it carried out some two months ago.
The company’s trading statement, released mid in June projected that its profit-after-tax for the first-half will increase by between 246 percent and 266 percent from K2.26 billion to between K7.8 billion and K8.2 billion.
In an interview, equity investment analyst at Stockbrokers Malawi Limited Kondwani Makwakwa attributed TNM’s performance to the recent recapitalisation where the company raised K30 billion through issuance of shares for cash.
“The latest trading statement suggests that this strategy may already be bearing fruit, with a notable rebound in profitability for the first half of the year. This improved financial footing—combined with stronger investor sentiment—appears to be driving the sharp rise in TNM’s share price.
“Given the momentum, it is highly likely that the company’s financial performance could be even stronger in the second-half, especially if operational efficiencies and revenue growth continue,” Makwakwa said.
In a separate interview market analyst Brian Kampanje said the company’s trading statement gives confidence to investors of an imminent turnaround especially that main shareholders were determined to recapitalise the business.
Kampanje said: “The confidence shown by the major shareholders by injecting additional capital in May 2025 through the issue for cash transaction of K30 billion indicates their confidence in the long term prospects of TNM.
“The demand from both the retail and institutional investors is driving the prices upwards. This is great news for the local bourse and we should expect even more surprises as we wind up 2025.”
On his part, Minority Shareholders Association of Listed Companies chairperson for Central Region Purity Chitalo has since described the TNM share value gain as a vote of confidence to retail investors.
“The issuance of 1.5 billion new shares was feared to dilute even further the company’s share price and gains of shareholders but as it stands, we believe the funds raised during the process have been put to good use – restructuring the balance sheet and paying off all expensive debts which kept on eroding the company’s profitability,” Chitalo said.
Capital market analyst Benedicto Nkhoma said the TNM’s surge in share price comes from the confidence the market has due to the recent release of the trading statement which projects good profit on top of the successful restructuring of debt and equity.
Earlier, National Bank of Malawi NBM Capital Markets Limited chief executive officer Benson Jere, who was the lead adviser in the TNM’s issue for shares transaction, said although the share transaction involves few existing shareholders, their capital injection will positively impact all shareholders.
Jere said the overall benefits of the transaction outweigh any impact of dilution, adding that recapitalisation will significantly reduce the debt burden of TNM plc.
