Malawi: Mobile company flies high

Malawi`s top mobile company TNM has listed on the stock exchange market weeks after the public sale of its shares priced at K2.00 Initial Public Offer (IPO). During the listing the price of the shares rose by 75 percent to K3.50 thereby leading the market as the most sought after.

In all, 34,000 people bought the shares and the company raised K2.4billion through the trading. On the first day of the stock market trading 146 million shares changed hands that made the company the most attractive now on the stock market. Few weeks ago the Initial Public Offer of 1.29 billion shares was over subscribed with 305 percent.

Stock Exchange Operations Director John Kamanga said TNM shares gained a total of 362.84 points from 5, 958.88 adding up to 6,323.71 points. He said TNM’s presence has consequently increased the number of counters (companies) on the local bourse to 15.

MSE board chairman Khrishna Savjan praised TNM for listing on the stock market saying the development meant Malawi’s capital market has come of age and that people are taking interest to save money through the purchasing of shares. With 34,000 shareholders, TNM has surpassed other top companies including NBS bank with 11,000 and Malawi Property Investment Company (MPICO) at 13, 000.

Service enhancement

TNM executive board member Pius Mulipa said the sale has been successful, as it has enabled the company to go closer to its public. He said the K2.4 billion would enable them enhance their services and most probably hasten the upgrading process of their machines.

“We are now a public company and there are so many rules of running a public company particularly with the demands from our share holders as well as customers. More importantly the listing has empowered us to upgrade our system even faster,” he said.

TNM ‘s lead advisor on Stock Exchange Rob Stangroom from Securities Africa described the share-pricing rise as a result of growth of the confidence people have in TNM shares. “I was the first person to establish stock market in the country in 1996; we started with small number of companies now we have 15.

“The listing of TNM is special because of the observed scramble for the shares. It is evident that people have confidence in the TNM shares but above that, the presence of many counters on the market means investors now have a choice where to go,” he said.

Simon Msefula MSE Chief Executive said TNM’s listing was historical going by the record of being over subscribed to the tune of 305 percent. He said: “There is every indication that the TNM prices gain more points and go up.”