Illovo clocks 25 years on Malawi Stock Exchange


Illovo Sugar Malawi has celebrated clocking 25 years of listing on the Malawi Stock Exchange (MSE).

The company listed on the local bourse in 1997 starting off with a share price of K2.25 but is now trading at K500.10.

Gavin Dalgzish, Board Chairperson said Illovo looks forward to a good working relationship with MSE as they look to expand. 

Board Chairperson
Dalgzish: We are in a strong position

Dalgzish acknowledged there have been trying times but they have been resilient.

"We had to reset the balance sheet, we are in a great shape, having little or no debt. We are in a position of strength. The journey is described in where you end up."

Managing Director, Lekani Katandula acknowledged there have been challenges in the operational environment such as production and quality concerns.

He also mentioned economic challenges such as inflation, foreign currency, high interests among others.

Katandula said going forward their new business strategy is go reduce costs of growing, making, distributing and selling their products.

Illovo was the third company to list on the MSE at K28 million.

John Robson Kamanga, MSE CEO  said and they can confidently say the listing of Illovo has been profitable for the company and investors.

"It's a sweet deal."

Kamanga said this should act as a signal for other companies looking for value creation.

"It's not just about bringing in investment but they [companies] aught to pursue and consider investing on the MSE. 

"The stock market is there to provide long-term investment. 

"They have created value, they have grown in size, they have also raised up to 300 billion from K1.3 billion, that is value."

Kamanga also explained the MSE has two platforms which deal in equity and bonds.

Kamanga: We have the ability to raise funds locally for projects

"Within the MSE we have the bonds aspect, government through Reserve Bank of Malawi raised 780 billion last year.

"This year they have raised K1.1 trillion. The private sector specifically My Bucks raised K14 billion. The MSE provides capital. Government has utilised that angle."

Kamanga said they are sending a signal to not just think of shares but raising capital through bonds.

On wooing companies to list on the MSE, Kamanga said they have business symposiums and business clinics to identify potential client.

They are also using the media engagement as a tool considering its a vessel to carry financial sector messages.