FDH Bank introduces loan for share purchase on Malawi Stock Exchange

FDH Bank has introduced a loan of up to K10 million for both customers and non-customers to borrow to enable them purchase shares which the bank is currently offering in anticipation of listing on the Malawi Stock Exchange (MSE) in August this year.

Nkunika: Loan repayment period is 24 months at an interest rate of 19%.

Head of Marketing at FDH Bank, Levie Nkunika said the loan repayment period is 24 months at an interest rate of 19%.

“The loan solution aims to allow both FDH and Non FDH account holders to make bigger investment (buying more shares) by easing cash flow problems and thereby moving towards a more secure and financially independent future. It’s easing accessibility to this rare investment opportunity,” said Nkunika.

FDH Bank issued the Initial Public Offer (IPO) on 29th June 2020 and will close on 17 July 2020 where people can purchase the 1.38 billion shares or 20 percent stake at the price of K10 per share.

“People can collect application forms and pay for the shares at all FDH Bank and Standard Bank Service Centres and payment is accepted using the digital channels as well. The application forms and prospectus can also be downloaded from the webpage: www.fdh.co.mw/investor,” said Nkunika.

He said the minimum number of shares one can apply for is 500 shares at a total cost of K5000.00 but was quick to mention that people are free to apply for as many shares.

“People should submit their share application forms with proof of payment through FDH Bank and Standard Band Service Centres, FDH One Click, or Whatsapp on +265 880 898 021 or email: [email protected],” explained Nkunika.

Speaking early this week during the opening of the IPO, FDH Managing Director Dr Ellias Ngalande said the listing is in fulfillment of a contractual obligation with the Government of Malawi as part of the Malawi Savings Bank (MSB) acquisition in 2015 to list the bank.

He said the financial services sector remains one of the most attractive investments on the MSE.

“We have a strong brand, we are market leaders in digital banking, our financial inclusion strategy remains unmatched and we are proud to invite the public to share in our success and excellent growth prospects,” said Ngalande.

A pre-listing statement shows that at the end of the IPO, FDH Financial Holdings will own 78.79 percent in the bank while the public will own 20 percent and MSB Esop 1.21 percent.

Follow and Subscribe Nyasa TV :

Sharing is caring!

0 0 vote
Article Rating
18 Comments
newest
oldest most voted
Inline Feedbacks
View all comments
Collins Namkhulupa
Collins Namkhulupa
2 months ago

Musatibhowe. Bank iyiyi munatibera aMalawi mukufunanso tiyigulenso? Mupite nayo ku Thyolo ndi ku Mulanje kwa amoya anu omwewo mbava inu. Munyera mperere chaka chino. Mpinganjira anyera matuvi ku Prison shupiti

Paul
Paul
2 months ago

this is illegal and almost skin to insider trading. The company is trying to over-value its true worth. Besides, in case of default on the loan; it stands to gain by taking over the shares at face value. The bank is printing it’s own money.

Companies like this should be stripped of banking licences as they only serve as money laundering agencies. Check the Companies Act and especially rules on share sale issues.

Khalifonya
Khalifonya
2 months ago

Sale is indeed questionable.
It is highly unlikely that Govt will maintain accounts with this bank let alone if any other company will want to associate itself with this bank considering the change of regime and also the fact that one of the owners is answering corruption charges.
Kuti mundifunse, nkuona kuti The outlook looks goomy and this bank will struggle in the next 12 months

Mbachi
Mbachi
2 months ago

Free advice. Never get these loans. We dont get a loan to buy shares where you will have no control on how the business is run. The diviedn of this company is only MK1.25 per share. Sandards pays alot more…but i wuldnt borrow to buy shares…people avoid these loans,,,,,mkubeledwa

Don Master
Don Master
2 months ago

The bank was started with shady money from taxpayers. The MD is answering ing criminal charges in court. The bank relied on corrupt practices with DPP to be given all government businesses.

Mwanya ma share anuwo.

msundwe
msundwe
2 months ago

kugula ma shares a FDH? Ndiye kuweramira chitanda kumeneko. Bank yatha kale iyi. Money laundering mwapanga ndi DPP mulandidwa licence. Nawe Namadimgo zako azikupasa pompo pompo, uzapeza next day ma sherrif akungapo.

Kennedy
Kennedy
2 months ago

Fraud stars bank! You’ve looted tax payers money to build private entity soon you’ll taste your own medicine. You’re shameless bastards. God help take these evil out.

Mulopwana
2 months ago

This sale of shares is suprising indeed.

Baba Tunde
Baba Tunde
2 months ago

This bank is a money laundering enterprise owned by the biggest thieves Thom Mpinganjira. Mpinganjira is a big crook who always uses underhand tactics just as he tried with the judges bribery case. His crimnal enterprise was shielded by his connections to Mulhakho so that the Reserve Bank paid a blind eye to his deals. Whenever big moneys are stolen from government this is the bank that was used as a conduit. Once SKC cranks the whip this mafia enterprise will crumble like a house of cards. Levi Nkunika is a fine guy with impeccable marketing skills but even him… Read more »

BENTBY
2 months ago

no any sane investor will put his quids on FDH. the bank is encircled with all sorts of uncertainities. the owner of the bank is answering corruption cases. the purchase of MSB was also dubious.

shares
Read previous post:
Sulom says preparations for AGM on track

Super League of Malawi (SULOM) general secretary Williams Banda has disclosed that preparations for the much awaited Annual General Meeting...

Close