FDH Bank is amidst offering 1.38 billion shares in its Initial Public Offer (IPO), as the bank will officially be listed on the Malawi Stock Exchange in August. The bank recently released an IPO analysis which is outlining the history and future of the company, as well as projections based on the two factors. In the analysis, the bank transparently presents to its potential minortiy shareholders, that there are two reputational risks that the bank is currently facing.
“The bank is faced with a reputational risk regarding the former chair of FDH holdings, the largest shareholder of FDH bank.” says part of the analysis, speaking of Thom Mpinganjira who is currently in court for allegedly offering bribes to 2 out of 5 judges that were hearing the 2019 Presidential Elections case. The case, now in high court, resulted into Mpinganjira stepping down from the position as chairman of FDH holdings.
The analysis has outlined that amidst the IPO, the bank’s objective is to manage all relevant stakeholder
and operational risk to balance the avoidance of
financial losses and damage to the bank’s reputation.
On the other hand, the bank has stated that though it may survive amidst the coronavirus pandemic, the outbreak may negatively affect the bank especially considering Credit loans and guarantees, Deposits, Liquidity gaps, Foreign exchange (FX) trading and new customers.
The 1.38 billion shares present 20% stake in the bank, as the main targeted shareholders are both individual and institutional investors.