Malawi: Real Insurance Company overwhelmed with response after IPO

By the afternoon, after the trading started on Monday, all its 6,000 prospectuses ran out in all receiving banks and other institutions.

Stock Brokers Malawi Limited (SML) is the sponsoring broker in the IPO that closes on September 19.

SML's CEO, Mark Mikwamba said the overwhelming response is due to the confidence investors have in the insurance company.

"Real Insurance has decided to print an extra 3,000 copies to give [a] chance to Malawians willing to participate in the IPO,” said Mikwamba.

In IPO, the company is offering 77,5 million shares to the public at K2,30 each in readiness for listing on the Malawi Stock Exchange (MSE).

Real Insurance's managing director, Robert Ndungu said 10 million other shares have been set aside for the company's employees.

The company intends to use revenue from the IPO for expansion in Mozambique in 2010 after establishing a health insurance service that will benefit the public.

Real Insurance announced early this year of its intentions to add a counter on MSE which will be followed by mobile phone network service provider TNM Limited.