Airtel share sale on Malawi Stock Exchange under intense scrutiny 

Multi-national mobile telecommunications network operator Airtel  management decision to sell shares in the company has attracted mixed reactions as well as intense scrutiny with some Malawians already expressing reservations.

From Left: Charles Kamoto (Managing Director), George Kapalamula – Marketing, Madalitso Matemba – Customer Experience, Andrew Mtambalika – Networks, Maleck Kaziputa – Airtel Money, Virginia Jere – Finance, Brenda Seguwa – Supply Chain, Constantine Kanise – Networks and Alick Sikelo – Human Resource Director (far right)

Aitel is ffering a total of 2.2 billion shares at a price of K12.69 per share on the Malawi Stock Exchange (MSE), allowing the public for the first time to own part of the telecommunications firm.

he company’s offer represents Malawi’s largest Initial Public Offer (IPO) in the history of MSE listing.

But writing on his Facebook wall,  South Africa-based  Malawian socio-political commentator Kelvin Sulugwe says Airtel has not listed on the Malawi Stock Exchange in an honest way.

He says Airtel is largely owned by the Bhart family of India who manage it through an establishment called Airtel Africa registered in The Netherlands.

Sulugwe says Airtel Malawi is composed of three companies which are Airtel Mobile (the Airtel we all see everyday as the face of the business), Airtel Mobile Money and Airtel Towers.

“All the three companies above belong to one family from India. Out of those three, it is Malawi Towers and Airtel Mobile Money which actually make money by providing services to Airtel Mobile,” says Sulugwe.

However, Sulugwe says the two companies which make the money are not part of the listing but the broke company, Airtel Mobile which is bankrupt and with no hope of recovering from its negative balance.

“What the Bhart family is doing to Malawi is simply selling them that Sobo Orange Squash bottle but with no contents in it, hoping they will fill it with water.

“An empty shell that will make them take the whole whopping US$37 million out of Malawi, leaving you and me with nothing, but investment forms in our hands,” says Silugwe.

Silugwe describes it as a dangerous scam approved and made legal by the Reserve Bank of Malawi and the Malawi Stock Exchange.

According to Airtel Malawi managing director Charles Kamoto it is the decision  to sell shares by some of the company’s majority shareholders whom he said have disposed of their equity.

He said the offer will remain open until January 31 2020 before announcing the results of the offer to the public on February 14 2020 and thereafter officially listing on the local shares market on February 24.

This listing will also enable the company to comply with Section 35 of the Communications Act of 2016, Regulation 26 (2) of the Communications (Telecommunications and Broadcasting Licensing) Regulations of 2016 and Clause 42.2 of the subsidiary’s operating licence, which requires the company to have at least 20 percent local Malawian shareholding.

Airtel Malawi has since engaged Standard Bank plc to act as book runner and as lead transaction adviser for the company.

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Ineyo
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Ineyo

Stay away from this. They have transferred almost all there value into loans from India. And take into accoutn the sister companies where the real money is. At the end you will get NOTHING. No dividends until the loan is repaid. Airtel is just listing becoz of MACRA. The don’t want. YOU HAVE BEEN WARNED!

Gerald chirwa
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Gerald chirwa

Kelvin Silungwe..social political commentator…you must be joking.. this guy is a washed PRO from Bushiri..he doesn’t know shit..or his articles are copy and paste..he should be arrested for plagiarism..And please tell me what did he study at UJ..Please quote from credible sources

Mtete
Guest
Mtete

Buy the shares at your own risk and end up with the share price being static, if not gradually reducing in value.

Eshwaar
Guest
Eshwaar

MSE IS NOT THE BETTER OPTION FOR INVESTMENTS IN MALAWI RATHER ONCE SHOULD PUT HIS MONEY IN PROPERTY AND BUSINESS

AS BANKS AND COMPANIES GOING BANKRUPT THE INVESTMENTS WILL NOT
EVEN GET THEIR MONEY BACK

Eshwaar
Guest
Eshwaar

MALAWI STOCK EXCHANGE IS A FAILURE IN RETURN ON INVESTMENTS FOR ARGUMENT SAKE – TAKE THE CASE OF TNM SHARES WHICH WERE OFFERED IN THE YEAR 2008 2008 – TNM SHARE WAS OFFERED @ K 2 PER SHARE 2019 – TNM CURRENT PRICE ON MSE @ K 26 PER SHARE APPRECIATION PER SHARE IN 11 YEAR K 24 – PER YEAR K 2 PER SHARE % WISE IS NOTHING AND DIVIDEND DURING THE YEARS PAID BY TNM IS VERY NEGLIGIBLE EVEN BANK FIXED DEPOSITS GIVE YOU MORE RETURN AFTER 11 YEARS OF INVESTMENTS IN TERMS OF DE-VALUATION YOUR MONEY LOST… Read more »

Katali
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Katali

Akulu if you bought MK1,000,000 worth of TNM shares in 2008 i.e. 500,000 shares. Then in 2019 they are worth MK13,000,000. Converted @ EXGK745 to USD17,499. A 250% increase in dollar value…

Mbonga Matoga
Guest
Mbonga Matoga

You are making a good point, but it is the same thing with savings in a bank account, once the kwacha is devalued, your savings also depreciates as well….

M'malawi weni-weni
Guest
M'malawi weni-weni

Airtel Malawi plc that is listing is not bankrupt as your analyst is alleging, it is only heavily leveraged. But to determine whether this debt load posses major risk to investors, also analyze its debt service coverage ratio.

That financial advice can be sought from financial advisors.

But one thing is certain: why are financial institutions willing to underwrite the IPO?

Msambanjati
Guest
Msambanjati

You have to be insane to invest in an Indian company especially in Malawi where even the govt is naive with financial securities

Tude
Guest
Tude

Those with experience on tnm shares share here. Does this share things work?

Mbonga Matoga
Guest
Mbonga Matoga

For those who don’t know, Airtel Africa, the parent company of Airtel Mobile, was listed on the London Stock Exchange 5 months ago and it is not doing badly. Those two other Airtel businesses that have been mentioned in this article are actually independent components of the Airtel business franchise. Airtel Africa is currently trading at 79 pence on LSE, so if Airtel had decided to enlist Airtel Africa on the MSE what would have been the starting share price and how many ordinary Malawians would have had a chance to invest in this company apart from the usual corrupt… Read more »

Chimutu
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Chimutu

Yes it is listed on LSE and there is no way these Indians can mess around with peoples’ financial securities there. By the way who is protecting Malawians from these predators? The UK has strong financial regulations and there have numerous security exchange agencies that protect investors from crooks and predators like Airtel. Ife tilibe

APM akundiyamwa shaft 🍆👅
Guest

Kkkkkkkkk I like the analogy

Joseph Banda
Guest
Joseph Banda

you do YOU ARE VERY SICK needing an urgent attention

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