MSE’s MD: Changes to BML's shares offer good opportunity for young people interested in buying shares

The proposed changes by the Bank of Maldives (BML) to its shares offer a good opportunity for young people who want to buy shares, says Mohamed Aushan Latheef, the Managing Director and Group CEO of Maldives Stock Exchange.

In an appearance on Public Service Media (PSM)’s ‘Raajje Miadhu’ show, Aushan said the share prices of other listed companies in the Maldivian Stock Exchange are usually between MVR 40 – MVR 150.

However, BML shares are around MVR 800 per share, he said.

He noted that this is a relatively large amount for a young person who wants to buy shares for the first time.

Aushan said the proposed changes by BML will open up new opportunities for prospective first-time buyers.

He said that as part of efforts to expand the role of youth in the stock market, everything related to trading was brought online last year, and work is in progress on completing the 'Infinity' app, a mobile application for buying and selling shares.

He said that the MSE does a lot of work every year to raise awareness among the youth in this field.

“We believe that creating a generation of young investors who are informed and have confidence in the market is necessary to actually expand this market in the future,” he said.

Aushan wishes to see a day when resorts or guesthouses can be listed, and shareholders can earn in dollars.

Citing the example of BML, he said it was important for listed companies to make such favorable changes to their shares.

Proposed changes to BML’s shares:

• Bonus share issuance: Shareholders will receive two additional shares for every one share currently held, at the same face value.
• 1:10 share split: Each existing share, including the newly issued bonus shares, will be divided into ten shares.  The face value per share will change from MVR 50 to MVR 5. However, this change does not affect the total value of a shareholder’s investment.

According to BML, it is proposing the charges in order to:

• Improve the affordability of the bank's shares for investors
• Encourage broader investor participation in the market
• Enhance market liquidity and trading activity
• Position the bank for potential future public issuances of new shares