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Airtel Malawi IPO oversubscribed by 34%

By , ITWeb
Malawi , 17 Feb 2020

Airtel Malawi IPO oversubscribed by 34%

Airtel Malawi has announced that its Initial Public Offering (IPO) has been oversubscribed by 34% and the overallotment allocated to prospective shareholders.

Airtel Malawi Managing Director Charles Kamoto said the oversubscription is testament to the fact that Malawians believe in the future prospects of the company and want to participate in- and benefit from the growth of the business.

"On my part, I am pleased at the interest that we have received from far and wide, which will not only enable us to be compliant with the Communications Act of 2016 with respect to ownership, but also ensure that, with the requisite minimum numbers achieved, we will be able to list at the 15th counter on the Malawi Stock Exchange," said Kamoto.

The Malawi Communications Regulatory Authority (MACRA) had previously recommended that shares be allocated to Malawians first, followed by companies owned by Malawians and then to pension funds.

In the IPO, 2,200,000,000 shares were on offer to the public through an offer for sale of 1,650,000 (15%) and an overallotment of 550,000.

While a total of 2,200,000,000 shares with an issue price of MWK12.69 per share were on offer, the total number of shares applied for amounted to 2,207,272,446, resulting in the oversubscription.

MACRA also directed that subject to its approval, any outstanding shares thereafter were to be allocated to foreigners.

"Malawians individuals, companies and pension funds were able to absorb the entire shares on offer and meeting the localisation requirement," the statement said.

It further said all shareholders will receive emails or SMSs confirming the shares that they have been allotted and that the shares will be registered in the Central Securities Depository on 24 February 2020 by the Transfer Secretaries, Standard Bank Plc.

It says the balance of the applications, which comprises incomplete applicants and foreign applicants, amounting to MWK92.29-million will be refunded beginning 17 February 2020.

Airtel Malawi said adding a counter on the Malawi Stock Exchange will provide additional opportunities for investments and enhance the liquidity of the exchange.

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