Loita Investment Bank has received approval from the Malawi Stock Exchange (MSE)

Loita Investment Bank (LIB) has received approval from the Malawi Stock Exchange (MSE) to list on the bourse in August as part of its growth strategy. Managing Director Jerome Bissay said in exclusive interview in Blantyre Wednesday.

Loita`s listing will bring the number of companies on the local bourse to 10. Companies currently listed on the MSE are National Bank, Commercial Bank, Sucoma, Packaging Industries, Sunbird, Press Corporation, Old Mutual, Blantyre Hotels and Nico.

The listing of Loita is expected to boost the MSE whose market capitalization presently stands at K8.6 billion for the domestic market. However, if the foreign stock held by Old Mutual and Press Corporation are added, the market capitalization is K418.6 billon.

Bissay was optimistic that the company will be a buy because of its impressive performance. Loita last week reported a K27.2 million profit against a backdrop of a troubled economy. This profit was three times more than what they gained in the previous financial year.

According to Bissay, Loita has a growth strategy and one of its components includes the listing of the company.

“We are confident that we will continue to grow and we will do better because people are more willing to invest where there are good returns for them,” said Bissay.

He also said it was necessary to list on the MSE to raise equity or capital that will facilitate that growth. He did not disclose how much the bank wants to raise on the stock exchange, saying that is being worked out.

He could also not immediately say how many, shares the four-year old bank will issue and what the price per share will be. He said those will be determined after revaluating the company`s assets

Asked why the bank is listing on a market which has not performed satisfactorily.Bissay said although the conditions are difficult, the MSE still has to play its role.

“Loita`s long-term view is that things will improve,” said Bissay who disclosed that plans to list the company were approved by the bank`s board last December.

He added that it is the view of bank that is here in Malawi to stay has to play a role in the development of the country.

First Discount House (FDH) Corporate Services and Zimbabwe-based Kingdom Financial Holdings Limited are the corporate finance advisors to the listing.

Loita Investment Bank is 100 percent owned by the Mauritian group Loita Capital Partners International It offers investment-banking products to the corporate market, including multinationals, major local corporates, other financial institutions; NGOs and parastatals.

Among the bank`s achievement in the past two years include being the agent for the country`s first bond programme of US$20 million. It also released US$30 million worth of credit for export finance.
Further more, Loita launched the first-ever issue of commercial paper for Press Corporation and was the first licensed financial institution to structure and implement banking facilities based on Islamic principals for trade-related transactions.

The bank has also pioncered the creation of treasury products such as Asset Swaps and Currency Linked Certificates, among other products.