By Duncan Mlanjira
NBS Bank announced on Wednesday, December 19 that it has introduced a loan facility which people can utilize to access a loan in order to invest in ICON Properties shares.
NBS Bank together with Standard Bank are receiving banks for ICON Properties, which is in the process of listing on the Malawi Stock Exchange and opened the Initial Public Offer of shares (IPO) from December 7 to 28 and the listing will take place on the 21st January, 2019.
ICON Properties is a new subsidiary of NICO Holdings, which aims at transforming the real estate landscape to the next level so that they continue to being the market leader and NBS Bank wants people to be part of this success.
NBS Bank’s Workplace Banking Manager Faith Lemani told prospective investors at a cocktail held at Protea Ryalls Hotel in Blantyre on Wednesday that this special loan facility is a payroll based and that no extra collateral is required other than the shares bought.
“Salaried employees can walk into any of our branches to ask for the loan and what they need to bring is a letter of undertaking from their employers that they will deduct the loan repayment from their salaries and submit to NBS Bank.
“If an employee already has an account with NBS Bank and gets paid through it, then we will do the deductions ourselves.”
Lemani said the loans is at 27.5% interest and the deductions should not exceed 65% of one’s gross salary.
“We are a caring bank as our motto says. So we want to help our customers and everyone else to grow economically and we will always be by your side,” she said.
One of ICON Properties director of the Board, Vizenge Kumwenda, who is NICO Holdings Group Managing Director, said the purpose of the gathering was to share more on the IPO process and to emphasize that ICON is a very strong and sound company whose business portfolio includes highly valued real estate assets with very solid returns.
“ICON is listing after a 10-year break on the Malawi Stock Exchange. We are re-igniting activity in the capital market. As you are aware NICO, which is the parent company to ICON, was the first company to list on the Malawi Stock Exchange. So as a group we always provide leadership where leadership is required.
“ICON is a product of an extensive collaborative effort among many parties. We worked very closely with other shareholders to realize this dream. So, ICON is a demonstration of the power of working together.
“An IPO is always a good opportunity to unlock the true value of a company, while at the same time giving investors an opportunity to make a decent return. This is why we decided to list ICON on the Malawi Stock Exchange.
“At the same time, we wanted to give the public an opportunity to be owners in a truly great company. We encourage all Malawians to participate in this IPO. With as little as K50,000 one can become a shareholder in ICON.
“The timing is also perfect. Investing in the only IPO in a decade is a truly unique Christmas gift to oneself or family so we encourage you to forgo some of the Christmas shopping to invest in the future,” he said.
ICON Board’s chairperson is Robert Shrarar and the other directors are Kumwenda, Louis Sibande, Desford Kamkwamba, Simeon Banda, Joseph Malingamoyo, Graham Chipande and Zunzo Mitole.
ICON is issuing 1.68 billion shares at a price of K8.75 each and this represents 25% of the total value of the company.
At a press conference held on December 7 to announce the launch of the IPO process, Kumwenda said they hope to raise K14.7 billion to go into new ICONic infrastructure projects that will transform the property landscape in Malawi.
Interested investors can obtain application forms and the prospectus from the receiving banks, NBS Bank and Standard Bank and from all stock broking firms.
In announcing the launch of ICON on November 13, Kumwenda had said was formed with the objective of owning, leasing, managing and developing of commercial, industrial, and retail properties.
ICON’s properties are located in major economic centres in Malawi and include landmarks shopping malls, prime office buildings and key industrial sites and some of the landmark properties include Chichiri Shopping Mall — the largest in Blantyre located at a major junction on key roads connecting various parts of the city; Lilongwe City Mall also located in the busiest commercial district in Lilongwe Old Town and Kang’ombe House which is the tallest commercial office building in Malawi located in the high street of the Capital City Centre.
It has assets across all the three regions of Malawi that are well positioned to capture middle and upper class retail spending and was incorporated in Malawi on 4th of June 2018 and incorporated to a public limited company on 11th October 2018.
“The company’s mission is to be at the forefront of success, quality property investment and developments in Malawi and to provide maximum returns for all stakeholders. The number of properties in their portfolio is 22 at the value of MK50.04 billion.
“These properties haveattracted tenants that comprise market leaders in banking and finance, international development institutions, United Nations organisations, local blue-chip companies and high-end food and fashion retailers,” Kumwenda had said.
The company’s shareholding after its portfolio restructuring as at 1st November 2018 are NICO Life Insurance Company as major shareholder at 63.17%, Pension Funds of Standard Bank, National Bank, Magetsi, Limbe Leaf Tobacco, Illovo Sugar, SUCOMA, Puma Energy, Toyota Malawi, Press Corporation, Associated Pension Trust, National Investment Trust Plc, Investment Alliance Limited, NBC Bank Plc, M.E. Kondowe and Limodzi Investment Limited.