NBM announces share split plan

National Bank of Malawi (NBM plc) says it is considering a share subdivision of its stock on the 17-counter Malawi Stock Exchange (MSE) in a bid to make it the third listed company to undertake a share split.

A share split, or share subdivision, increases the number of shares in issue while reducing the price per share proportionately, leaving the company’s overall market value unchanged.

Stock market analysts say the move is undertaken when a share price has risen significantly, making the stock more accessible to a wider pool of investors.

If approved, NBM plc will join Press Corporation plc and Standard Bank plc who subdivided their shares to broaden investor participation and increase market activity.

In a published cautionary statement, NBM plc company secretary Zunzo Mitole said the subdivision will improve the marketability of its shares by making the stock affordable to many retail investors.

Reads part of the cautionary statement: “While the proposed subdivision of shares may have an impact on the company’s share price, it will not alter any shareholders percentage ownership interest in the company’s issued shares and is intended to increase the liquidity and marketability of the company’s shares.”

But NBM plc said the proposed transaction is subject to regulatory approvals, including shareholder approval.

“Accordingly, shareholders are urged to exercise caution and consult professional advisers before dealing with the company’s shares until a formal announcement is made regarding the final terms and implementation of the transaction,” reads the statement.

The proposed NBM plc share split comes months after Standard Bank plc and Press Corporation plc completed their respective share subdivision of one share to five shares and one share to 35 shares, respectively.

In an interview yesterday, Equity Masters Limited board member Purity Chitalo said that a share split of one to five shares will reduce the price from around K8 900 to K1 800, making it more affordable for small-scale investors and first-time market participants.

Mitole: It will not alter any shareholders’ percentage

ownership interest in issued shares. | Nation

He said: “It could also encourage more buying and selling, improve liquidity, increase market turnover and restore investor confidence amid the market’s recent correction.

“More importantly, a share split does not dilute existing shareholders’ ownership.”

In a separate interview, Stock market investor and finance expert Brian Kampanje said the stock split will enable shareholders to cash in part of their stocks without losing out on shareholding while also giving an opportunity for others to invest in the bank’s shares.

He said: “This will have a positive impact on the Malawi Stock Exchange as the number of issued shares rises and so will those changing hands.

“With neither no initial dilution of shareholding nor requirement to pump in additional funds like in the case of rights issue, minority investors will be better off.”

Stockbrokers Malawi Limited equity investment analyst Kondwani Makwakwa said the milestone means that investors will have a larger number of shares available to buy and sell.

“It will also increase retail investors’ participation as the increased number of shares and lower price per share makes NBM shares more accessible to small investors,” he said.

In an interview, MSE chief executive officer John Kamanga described the move as a simplified way of making the NBM plc stock, which is currently selling at K8 899.99 per share, affordable.

“This is the best option of making the high-valued shares at least affordable to low-income earners and it can also help in terms of liquidity on National Bank of Malawi shares,” he said.

Minority Shareholders Association of Listed Companies secretary general Frank Harawa hailed the share subdivisions as the direction the grouping has been lobbying for some time.

“A share split will improve the availability of these shares on MSE and equally preserve the value of shareholders already owned shares in these companies,” he said.

NBM plc, which has 466.9 million share on issue with a market capitalisation of about K4.1 trillion, had its shares trading at K8 899.99 on Friday October 23 2026.

It listed on MSE on August 21 2000 at an initial public offer price of K4 per share.

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