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.
FDH Bank Head of Marketing 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@example.com,” 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 and allow government dispose of its entire shareholding.
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.