NDBIB completes Rs. 2.8 b IPO in Maldives | Sunday Observer

NDBIB completes Rs. 2.8 b IPO in Maldives

NDB Investment Bank (NDBIB), acting as the Sole Financial Advisor and Manager, completed the Initial Public Offering (“IPO”) of Maldives Islamic Bank PLC (“MIB”), the only fully fledged Islamic Bank in the archipelago. MIB’s IPO, whilst raising MVR 244.1 Mn, was NDBIB’s 2ndsuccessful IPO in the Maldives and further elevated the investment bank as the only Sri Lankan advisor to have executed an IPO on foreign soil.

The IPO was oversubscribed by 1.5 times and the shares of MIB began trading on the Maldivian Stock Exchange after a gala bell ringing ceremony on November 17, 2019 in Malé. The IPO was ceremonially launched on July 28, 2019 and closed on September 22, 2019at the expiry of the offer period stipulated by Maldivian regulations with strong institutional and retail participation.

NDBIB CEO Darshan Perera said, “We look forward to raising debt and equity capital to enable growth as a part of our strategy of regional play.”

The IPO of MIB is the second such transactions managed by NDBIB in the Maldives subsequent to that of Ooredoo Maldives PLC, a subsidiary of Ooredoo Group, Qatar based global telco. MIB listed on the Maldives Stock Exchange (MSE) and raised MVR 244.1 Mn (equivalent to Rs. 2.8 Bn) from the public by offering Six Million Nine Hundred and Seventy Five Thousand (6,975,000) Ordinary Shares at a price of MVR 35.00 per Share.

NDBIB Chief Corporate Advisory Officer Nilendra Weerasinghe said “The right distribution strategy was critical to the success of MIB’s IPO. We achieved a record retail participation attracting over 16,000 applications from 20 atolls covering 144 islands”.

MIB issued 4,500,000 new Ordinary Shares raising MVR 157.5 Mn whilst a further 2,475,000 Ordinary Shares of the majority shareholder were sold raising MVR 86.6 Mn”. Additionally, the IPO broad-based the ownership of MIB.

Vice President of NDBIB and team lead for the transaction, Viraj Wijesinghe stated “Our experience during the Ooredoo IPO and extensive investor education efforts helped us provide a market accepted valuation and switch the investor focus from dividend yield to both dividend and capital gains”.

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