NDB Investment Bank (NDBIB), acting as the Sole Financial Advisor and Manager is executing its 2nd Initial Public Offering (“IPO”) in the Maldives with the launch of the IPO of Maldives Islamic Bank PLC (“MIB”), the first fully fledged Islamic Bank in the Maldives amounting to MVR 244.1 million.
MIB ceremonially launched the IPO on July 24, 2019 at a gala event held in the capital, Malé graced by Ibrahim Ameer, the Minister of Finance and Treasury in the Maldives. The event was well attended by business leaders, institutional investors, high-net worth individuals and regulators in the Maldives.
Darshan Perera, CEO of NDBIB, expressed his confidence about the IPO, stating,
“We have been long committed to the Maldives, raising debt and equity capital to enable growth as a part of our strategy of regional play. We are excited to be a part of MIB’s entry to the Maldivian capital markets and are confident that this IPO would be another landmark transaction on the MSE”. The IPO of MIB is the second such transaction managed by NDBIB in the Maldives subsequent to that of Ooredoo Maldives PLC, subsidiary of the Qatar based global telco. MIB intends to list on the Maldives Stock Exchange (MSE) and raise MVR 244.1 million (equivalent to Rs. 2.8 billion) from the public by offering up to a maximum of Six Million Nine Hundred and Seventy Five Thousand (6,975,000) Ordinary Shares at a price of MVR 35.00 per Share.
Nilendra Weerasinghe, Chief Corporate Advisory Officer of NDBIB, stated “While the Maldivian market is at a nascent stage, over the years we have witnessed increased awareness among the general public and have been planning extensive educational campaigns to promote equity ownership. We believe the MIB IPO will not only be a catalyst to the market but also provide an attractive opportunity for the investing public”.
MIB is expected to issue 4,500,000 new Ordinary Shares raising MVR 157.5 million whilst a further 2,475,000 Ordinary Shares of the majority shareholder are expected to be sold raising MVR 86.6 million.
The equity raised will strengthen the Bank’s capital base and enable growth in its financing portfolio. The sale of shares would facilitate MIB’s majority shareholder, Islamic Corporation for the Development of the Private Sector (“ICD”), to comply with its internal investment policy guidelines for shareholding in portfolio companies. Additionally, the IPO will broad-base the ownership of MIB and give an opportunity to the Maldivian public to be part of the growth prospects of the Bank.
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