Following the issuing of an Initial Public Offer (IPO) by Airtel Malawi plc, last week, the minority shareholders association of listed companies feels that Airtel Malawi should have made plans to also enlist Airtel Money or Airtel Mobile Commerce Limited on Malawi Stock Exchange (MSE).
General Secretary of the association, Frank Harawa, told Times Television’s Breakfast Live program, that minority shareholders of the newly enlisted company, since it the firm is already in K42 billion debt.
Airtel Malawi’s listing on MSE follows after the Malawi Communications Regulatory Authority (Macra) slapped the firm with a hefty K820 million fine for failing to comply with the Communications Act, which partly states that 20% of its shareholding should be local. In an effort to ensure local ownership, Airtel enlisted on MSE.
On the other hand, Frank Harawa told The Nation newspaper that the local bourse is becoming less appealing to be considered as an investment avenue. The concern follows as the first half of 2019 was considered a struggle for various businesses, following a policy rate that was reviewed twice in that first half alone, not to mention the pre/post election era tension. However, as 2020 began, all firms on the local bourse revealed that they are expecting to reap profits.