NDBIB Advisor to Rs. 2.8 b IPO in the Maldives

Assistant Manager Charith Udugama, Director/CEO Darshan Perera, Assistant Vice President Sujani Perera, Vice President Viraj Wijesinghe, Chief Corporate Advisory Officer Nilendra Weerasinghe

NDB Investment Bank (NDBIB), acting as the Sole Financial Advisor and Manager is executing its second 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 244.1 million MVR. 

MIB ceremonially launched the IPO on 24 July at a gala event held in the capital, Malé graced by the Maldives Finance and Treasury Minister Ibrahim Ameer. The event was well attended by business leaders, institutional investors, high-net worth individuals and regulators in the Maldives.

NDBIB CEO Darshan Perera 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 244.1 million MVR (equivalent to Rs. 2.8 billion) from the public by offering up to a maximum of 6.975 million Ordinary Shares at a price of 35.00 MVR per Share. 

NDBIB Chief Corporate Advisory Officer Nilendra Weerasinghe 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 157.5 million MVR whilst a further 2.475 million Ordinary Shares of the majority shareholder are expected to be sold raising 86.6 million MVR. 

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.

NDBIB Vice President Viraj Wijesinghe and team lead for the transaction stated: “Investors could apply for shares through the infinity portal which is a fully online process. All aspects such as securities account opening, IPO application submission and payments can be done online at the investor’s own convenience. This solves the logistical and geographical challenges in retail distribution in the Maldives.” 

MIB IPO was scheduled to open for subscription yesterday and is expected to close on 18 September, allowing the maximum offer period for the Maldivian public to subscribe for MIB shares. The shares of MIB are expected to be listed on the MSE for secondary market trading by November.