* Instead of concluding that investor demand was weak, one could argue that retail investors, high-net-worth individuals and other eligible investors absorbed the overwhelming majority of the offer
* Despite the absence or limited participation of one of the market’s largest institutional investor groups
By Duncan Mlanjira
Continental Holdings Limited (COL) has announced results of its Initial Public Offer (IPO) to start trading on the Malawi Stock Exchange (MSE) raising about K135.4 billion out of the K146.9 billion worth of shares that were on offer.
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When asked whether the CHL IPO should be viewed as a success, given that it was not fully subscribed — since the total number of ordinary shares on offer was 743,308,604 and the total subscribed for was 701,834,576 — renowned market analyst, Benedicto Bena Nkhoma said his “answer is a resounding YES, but the context matters”.
“The IPO achieved approximately 93% subscription, raising about K135.4 billion out of the K146.9 billion on offer. In today’s economic environment, that is a significant achievement,” he explains.
“There is also a market discussion that pension funds may have participated only to a limited extent because of regulatory investment limits.
Benedicto ’Bena’ Nkhoma
“I have not seen official confirmation of this, so we should be careful not to present it as fact. However, if this is indeed the case, then the results deserve a different interpretation.
“Instead of concluding that investor demand was weak, one could argue that retail investors, high-net-worth individuals and other eligible investors absorbed the overwhelming majority of the offer despite the absence or limited participation of one of the market’s largest institutional investor groups.
“That would say a great deal about the growing confidence of ordinary Malawians in the capital market. It also means the real story has not yet been written.”
Bena Nkhoma further explains that the next chapter begins on August 10, 2026 when CHL will start trading on the Malawi Stock Exchange (MSE), from which the market will answer four important questions:
I. Will the share price trade above the IPO price of K195?
II. Will institutional investors increase their holdings after listing?
III. Will there be enough liquidity to support active trading?
IV. Will CHL deliver the earnings growth and dividends that investors expect?
“In investing, an IPO is only the beginning — not the destination. Ultimately, the long-term success of this investment will not be measured by how many shares were sold during the offer period, but by how much value the company creates for shareholders over the years ahead.”
After the IPO, the shareholding structure is as follows: TransAfrica Holdings (34.35%), public shareholders (23.29%), Press Trust (17.80%), Employee Share Ownership Programme (9.98%), other minority shareholders pre-IPO (14.58%) — with total number of shares in issue being 3,013,234,416).
Continental Holdings Limited, which becomes the 17th counter on the MSE bourse, owns CDH Investment Bank, Continental Asset Management, Continental Capital, Continental Properties, Continental Pension Services, CDH Commodities and Continental Asset Management.
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