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(MaraviPost)-Airtel Malawi plc (NGSE:AIRTELAFRI, LUSE:ATEL) today, Friday, February 14, 2020 announced the results of its Initial Public Offer (IPO) in which 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.

 

The offer with an issue price of MWK12.69 per Share, was oversubscribed by 34% and the overallotment allocated to prospective shareholders.

 

While a total of 2,200,000,000 shares were on offer, the total number of shares applied for amounted to 2,207,272,446, resulting in the oversubscription.

Airtel Malawi Managing Director Charles Kamoto said: “This oversubscription is testament to the fact that Malawians believe in the future prospects of Airtel Malawi 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.

 

“Through this Offer, the Company has once again demonstrated its commitment to contribute to the growth and development of Malawi and envisages that adding an additional counter on the exchange will provide additional opportunities for investments and enhance the liquidity of the MSE. The Malawi Communications Regulatory Authority’s (MACRA) had previously recommended that shares be allocated to Malawians first, followed by companies owned by Malawians and then pension funds. Any outstanding shares thereafter were to be allocated to foreigners, subject to MACRA’s approval”.

 

Malawians individuals, companies and pension funds were able to absorb the entire shares on Offer and meeting the localization requirement.

 

He adds, “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. The balance of the applications, amounting to MWK92.29million will be refunded starting February 17, 2020.

 

“This comprises incomplete applicants and foreign applicants. These will be refunded directly into the bank accounts written on the application. Should theses details be incorrect a cheque will be mailed to the address used on the application form”.

 

Kamoto concludes “On behalf of the Board and Management team of Airtel Malawi plc, I would like to take this opportunity to thank each and every one of our stakeholders for supporting us through this period and ensuring that this process concludes. I would also like to wish our new shareholders a warm welcome and look forward to serving them into the future.”

 

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