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| Business |
| NBS Bank listing June |
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by
Moses Michael-Phiri, 10 May 2007
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08:14:14
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Bells are set to ring at the Malawi Stock Exchange (MSE) next month to signal the listing of NBS Bank Limited as the 12th counter on the local bourse when government is set to dispose 12 percent of the 16 percent stakes it currently holds in the bank.
In what appears to be one of the busiest moments for MSE, NBS Bank’s listing will be followed less than 60 days later by First Discount House Limited as the 13th counter.
Then in October yet another firm in the real property sector is also expected to join the stock exchange.
NBS Bank marketing and business development manager Stanley Mkwamba confirmed on Tuesday that all was set for the bank to list.
“Our board met today to approve the listing of NBS Bank Limited on the Malawi Stock Exchange. I can confirm that the plan to list on the stock market has been on the drawing board for some time and we have been waiting for the board to make a formal announcement to the public and today they have granted the approval for NBS Bank to list on the stock market,” he said.
MSE operations manager John Kamanga was also all smiles on Tuesday. He said NBS Bank’s listing will give investors an opportunity to expand their investments on the local bourse.
“NBS Bank is expected to list in late June this year. We are currently working on their documents and their prospectus will be ready soon. The listing of NBS Bank will increase the number of counters on the stock market and this will give investors a larger arena for investment,” he said.
NBS Bank—formerly The New Building Society—was incorporated as a limited company on 14th March 2003 and registered under the Banking Act on March 1, 2004 before starting commercial bank operations on July 1, 2004 when it inherited the assets of The New Building Society after its dissolution.
Listed financial services group Nico Holdings Limited is the majority shareholder with 74 percent stakes while government has 16 percent and the listed National Investment Trust Limited—the country’s first collective investment scheme—holds 10 percent shares.
NBS Bank head of treasury and company secretary Martin Ndenya said it was too early to indicate the percentage of shares to be off-loaded and how much in terms of capital the bank expects to raise through the offer.
“The board meeting has just approved the listing but we are still finalising the documentation. Let us wait until Friday when we will have all the information ready,” he said.
Privatisation Commission (PC) spokesperson Susan Banda said in a separate interview on Tuesday four percent shares will be off-loaded to NBS Bank Limited employees.
“We are analysing on how much [capital] we will raise on the stock market. But as of now we are still working on how we will implement the listing,” said Banda when asked how much government expected to raise from the listing.
NBS Bank, then New Building Society, was formed following the amalgamation of Central Africa Building Society, Commonwealth Century Building Society and First Permanent Building Society.
The New Building Society was incorporated under the Building Societies Act on February 7, 1964 and since then, The Society continued to operate under that Act and raised funds from the public and advanced them by way of mortgage loans against the security of land and buildings. Today, NBS Bank is the still market leader in mortgage loans.
Today, NBS Bank operates through a network of 12 branches and seven agencies across the country.
When listed, NBS Bank will become the fourth commercial bank counter on MSE after Stanbic Bank Malawi Limited, National Bank of Malawi and First Merchant Bank Limited.
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