Zimbabwe: Kingdom Expansion Plan On Course

KINGDOM Financial Holdings Limited (KFHL) regional expansion programme, is on course, following the issuing of a banking licence to its associate company in Malawi.

Standardbusiness was told last week that First Discount House (FDH), owned 40.16% by Kingdom, was given a banking licence by the Reserve Bank of Malawi on Thursday.

The licence has scope for merchant and retail banking as well as the formation of the building society.

Thomson Mpinganjira, the FDH head, said the licence enables the discount house to transform itself into a Kingdom model as a one-stop shop financial services company. FDH also has a stock broking company, FDH Stockbrokers.

"While FDH's listing was deferred, this licence approval means that implementation and roll-out of a bank will mean greater value for investors when the time comes for an Initial Public Offering," said Mpinganjira.

An FDH board meeting is slated for next Thursday to share the "good news" and map the way forward, he said.

FDH wanted to run an IPO this year to finance the setting up of a merchant bank.

The IPO and subsequent listing of FDH was assented to by the discount firm's board at a 12 June meeting. The IPO would have run from 9 July and closed on 3 August with listing slated on the 13 August, all things being equal.

The Malawian Stock Exchange told FDH that it had to get a licence first before running its capital raising initiative.

Had the IPO gone ahead KFHL's stake in the company would have been reduced to 28.14%. Other FDH shareholders -- T.F Mpinganjira Trust and Old Mutual -- would have remained with 27.89% and 14% respectively, with 30% of the shares open to the public.

T.F Mpinganjira Trust and Old Mutual have 39.84% and 20% shareholding respectively.

KFHL funding of the 40% of the licence costs will come from funds raised outside Zimbabwe through a public issue of Kingdom Meikles Africa Limited (KMAL) shares, Nigel Chanakira KFHL group CEO told Standardbusiness Friday.

"The appetite in South Africa, United Kingdom and Russia for KMAL stock has been encouraging," said Chanakira, who chairs the FDH board.