FDH Bank plc shares oversubscribed: K329m to be paid back to general public

The FDH Bank plc Initial Public Offer (IPO) for its shares has been oversubscribed by over MK 300 million, clearing the way for the bank to be listed on the Malawi Stock Exchange (MSE) early next month.

Board of directors for FDH Bank said in a statement that a total of 1,413,152,144 shares were applied for at a total value of MK14,131,521,437 against 1,380,206,250 ordinary shares that were being offered for a value of MK13,802,062,500,  representing an oversubscription of MK329 million.

“This means that over MK329 million will have to be refunded to the general public who made the application for the shares,” said FDH Bank  managing director Dr Ellias Ngalande.

The offer period for the IPO opened on 29th June 2020 and closed on 17th July 2020.

“The Board further wishes to advise that the Government of Malawi (‘GoM’) have opted to retain and not to dispose of their shareholding in FDH Bank as envisaged in the Prospectus. FDH Financial Holdings Ltd (‘FDHFHL’) in turn increased the number of their shares offered for sale in the IPO in lieu of GoM’s participation in order for the IPO to comply with the minimum Listings Requirements as stipulated by the Malawi Stock Exchange (MSE),” reads the statement signed by Ngalande and Company secretary Juliano Kanyongolo.

As a result of this development FDH Bank plc shareholding post IPO is that FDH Financial Holdings limited will hold 74.05%; GoM will hold 4.75%, MSB Employee Share Ownership Scheme 1.20% and the general public 20%.

“Of the amount held by the general public, 2,807 comprise of retail investors whilst 41 are institutional investors including preference shareholders.  The composition of shareholders post the IPO complies with Malawi Stock Exchange (MSE) Listings Requirements,” reads part of the statement.

FDH Bank’s shares will be listed on the Main Board of the MSE on Monday, 3rd August 2020 at 09.00hrs.

FDH Bank plc says refunds in relation to the IPO, where applicable, will be paid to the respective bank accounts detailed on the application forms not later than Tuesday, 28th July 2020.

“FDH Bank shareholders will be sent allotment letters on Tuesday, 28th July 2020 confirming the shares allotted and registered in their respective names at the Central Securities Depository. The Board extends its gratitude to all parties to this transaction, FDH Bank shareholders and the investing public for supporting the IPO,” reads part of the statement.

FDH Bank Plc was incorporated on 17th May 2007 and was re-registered as a public limited liability company under the Companies Act, 2013 on 3rd June 2020.

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