Market analyst Benedicto Bena Nkhoma
* And where appropriate, consult a licensed investment adviser before making such an investment decision
* Successful investing is not about following the crowd — it is about making informed decisions with patience, discipline and a long-term perspective
* As Continental Holdings Plc is currently going through its IPO, marking the first sale of its shares to the public ahead of planned listing on Malawi Stock Exchange (MSE)
By Duncan Mlanjira
Before fully committing to Initial Public Offering (IPO) by private companies, Malawian investors have been advised to meticulously analyse the business prospectuses, and — where appropriate — to consult a licensed investment adviser before making such an investment decision.
Advertisement
This has been emphasised by financial market analyst, Benedicto Nkhoma following the IPO process being undertaken by Continental Holdings Plc, which marks the first sale of its shares to the public ahead of planned listing on Malawi Stock Exchange (MSE).
Writing on his LinkedIn platform, Nkhoma — who the previous week guided-investors-on-acquiring-share-investment-in-company-businesses — was responding to some questions on whether he was considering in investing in the Continental Holdings’ IPO.
“I’ve received many questions about whether this IPO is worth investing in,” he wrote. “My answer is simple — don’t invest because everyone is talking about it. Invest because you understand both the opportunities and the risks.”
However, Nkhoma was quick to explain that after reviewing the Continental Holdings’ Prospectus and related information, what he found positive — in his balanced personal view — is that:
I. It is an established and profitable financial services group, not a start-up;
II. It has demonstrated strong earnings growth over the years;
III. It has a stated dividend policy, offering potential for both income and long-term capital appreciation;
IV. Another quality listing helps deepen Malawi’s capital market and expands investment opportunities for Malawians; and
V. Many analysts consider the valuation attractive relative to some listed financial institutions.
What investors should also consider
I. This is a secondary offer, meaning the proceeds go to the selling shareholder rather than into the business;
II. The valuation is open to debate and should not automatically be viewed as a bargain;
III. A significant share of the Group’s earnings comes from one key subsidiary;
IV. Exposure to Government securities means profitability is influenced by interest rates and the broader fiscal environment;
V. Diversification remains essential, particularly if you already have significant exposure to financial stocks.
Nkhoma’s position
“After weighing both the opportunities and the risks, I will be subscribing to the IPO and adding these shares to my long-term investment portfolio.
“That is my personal investment decision, based on my objectives, investment horizon and risk appetite. It should not be interpreted as a recommendation for everyone to do the same.
“Before investing, ask yourself:
I. Does this fit my long-term investment strategy?
II. Am I comfortable with the risks?
III. Will my portfolio remain well diversified after making this investment?
“Successful investing is not about following the crowd — it is about making informed decisions with patience, discipline and a long-term perspective.
“Disclaimer: These are my personal views shared for educational purposes and should not be regarded as personal investment advice.
“Every investor should read the Prospectus carefully and, where appropriate, consult a licensed investment adviser before making an investment decision.”
Advertisement
Darlington Alex Murupa, Internal Auditor Officer Tobacco Commission, responded to the post, describing it as “a very balanced and responsible perspective on investing”.
“The emphasis on understanding both opportunities and risks before committing capital is exactly the mindset that promotes informed investment decisions.
“Beyond the excitement that often surrounds IPOs, investors need to look at fundamentals, valuation, business concentration, market conditions — and how the investment fits within their overall portfolio strategy.”
“Your point that successful investing is not about following the crowd, but about applying patience, discipline, and informed judgement, is an important lesson for both new and experienced investors.
“Thank you for sharing such a thoughtful analysis and encouraging a culture of financial literacy in Malawi,” said Murupa.
Meanwhile, Continental Holdings Plc announced on Monday that MSE has granted it approval to extend the closing date of its IPO for one week — from July 20-27 and that consequently, the company’s shares will now be listed on MSE on August 10, 2026 from the initial August 3.
The extension was provides prospective investors with additional time to review the investment opportunity and submit their applications.
MSE Chief Executive Officer (CEO), John Kamanga, told The Nation newspaper this week that investor response to Continental Holdings’ IPO is positive — thus they approved the extension of subscription period by one week.
Kamanga told The Nation that they received a request for extension in order to accommodate more investors, including salaried employees.
“The extension was done in response to the enquiries the issuer has been receiving from some interested investors as they feel to have been left out as their pay day is after the closure of the offer.
“In response to this, the issuer applied to MSE for an extension to which we approved to be inclusive and give an opportunity to those whose pay day is between 20 and 27 of the month.”
John Kamanga
Cedar Capital CEO Armstrong Kamphoni, whose firm is the lead transaction adviser of the IPO, also attested to in an interview with The Nation that the response to the IPO this far has been positive.
Continental Holdings Limited owns CDH Investment Bank, Continental Asset Management, Continental Capital, Continental Properties, Continental Pension Services, CDH Commodities and Continental Asset Management.
It is offering 753 million shares, representing 25% of its equity at K195 per share.
Stockbrokers Malawi Limited equity investment analyst Kondwani Makwakwa disputed suggestions from some quarters that the extension could mean weak response, arguing that they have received more inquiries on the IPO.
“In terms of demand, we have experienced a lot of people coming to our office,” Makwakwa told The Nation. The extension is, therefore, welcome as it gives more people the opportunity to invest and provides extra time for those who were still reviewing the investment.”
Limited shareholders for Continental Holdings, which will become the 17th counter on the MSE bourse, include Trans Africa Holdings (61%), Press Trust (14.4%), an Employee Share Ownership Programme (9.98%), MIG Limited (6.17%), NICO Asset Managers Limited (6.07%), NBM Capital Markets Limited (2.6%) and Continental Asset Management Nominees Limited (0.74%).
After the IPO, the shareholding structure will be as follows TransAfrica Holdings will hold 32.64%, the public (25%), Press Trust (17.8%), Employee Share Ownership Programme (9.98%), NICO Asset Managers Limited (6.07%), MIG Limited (5.17%), NBM Capital Markets (2.6%) and Continental Asset Management limited (0.74%).
Advertisement