By Chisomo Phiri
Blantyre Hotels Plc says it has successfully raised K62.4 billion through a rights issue, exceeding its target.
This was announced during the official listing of the company on the Malawi Stock Exchange (MSE) on Monday in Blantyre.
In an interview with journalists, the company’s Board Chairperson, Vizenge Kumwenda, expressed gratitude for the overwhelming response, particularly from individual investors.
He said the rights issue saw the number of shareholders increase from less than 400 to over 4,700.
Kumwenda attributed the success to the company’s decision to extend the offer period, allowing more Malawians to invest.
He said the funds raised will be used to complete the Lilongwe hotel project, Lilongwe Rayalls, which is nearing completion.
Kumwenda emphasized that the hotel will create employment opportunities, promote tourism, and generate foreign exchange.
He also addressed concerns about the performance of the company’s existing hotel, citing the impact of COVID-19 and the limitations of being a single-property hotel.
However, Kumwenda expressed optimism about the future, highlighting the potential of the Lilongwe hotel to attract international travelers and capitalize on the city’s growing mining and infrastructure projects.
With the new hotel set to become operational soon, Kumwenda assured investors that the returns on their investment would be unprecedented, given the hotel’s strategic location and capacity.
On his part, MSE Chief Executive Officer (CEO) Johnson Kamanga, hailed Blantyre Hotels Plc,describing its achievement as a milestone, demonstrating the exchange’s capability to mobilize capital.
Kamanga attributed the company’s success to the growing confidence in the capital market and the attractiveness of its investment proposition.
The MSE CEO also addressed concerns about the cost of raising capital on the exchange, citing the Blantyre Hotels Plc’s rights issue as an example of a cost-effective transaction.
He noted that the cost of raising the K62.4 billion was approximately 4%, which is relatively low compared to other financing options.
Kamanga encouraged more companies to consider listing on the MSE, highlighting the benefits of accessing capital, increasing transparency, and promoting economic growth.
He also acknowledged the growing interest from pension funds, which have invested over K2.8 trillion in the capital market.
Kamanga disclosed that MSE has reported a strong performance in 2024, with a return on investment of 52.7% and several listed companies reporting significant profit growth.
He expressed optimism about the future, citing the growing confidence in the market and the potential for more companies to list on the exchange.
