BML share restructuring opens door for young investors, says MSE CEO

The recent changes proposed to the shares of Bank of Maldives (BML) present a significant opportunity for young people looking to enter the stock market, according to Managing Director and Group CEO of Maldives Stock Exchange (MSE), Mohamed Aushan Latheef.

Speaking on PSM’s Raajje Miadhu programme, Aushan noted that BML shares have traditionally been priced much higher than other listed companies in the Maldivian stock market.

“Most shares in the market are priced between MVR 40 and MVR 150, while BML shares are around MVR 800. With these changes, new opportunities will open for those who want to invest,” he said.

Aushan highlighted ongoing efforts to increase youth participation in the stock market, including the full digitalisation of trading services last year. He also revealed that work is underway on the Infinity mobile application, which will enable users to buy and sell shares more easily.

In addition, MSE continues to conduct awareness programmes aimed at building financial literacy among young people.

“We believe that by creating a generation of young investors who are knowledgeable and confident, we can expand the market in the future,” Aushan said.

He also expressed hope that more businesses, including resorts and guesthouses, will be listed in the future, enabling shareholders to earn income in foreign currency.

Details of BML’s proposed changes

Under the proposal, BML plans to introduce a series of measures aimed at improving accessibility and boosting market activity.

The bank’s board will first issue two bonus shares for every ordinary share held by shareholders as of the record date, March 18, 2026. This means a shareholder with 100 shares will receive an additional 200 shares, increasing their total to 300.

Following this, BML will implement a 1-for-10 share split. As a result, a shareholder who initially held 100 shares will ultimately hold 3,000 shares after both the bonus issue and the share split.

The nominal value of each share will also be reduced from MVR 50 to MVR 5.

While these changes will not affect the overall value of shareholders’ investments, they are expected to lower the price per share, making them more affordable and attractive to a wider range of investors.

According to BML, the restructuring aims to enhance market liquidity, encourage broader participation, and position the bank for potential future capital raising.

Market officials believe that the increase in the number of shares and the expected lower share price will contribute to a more active trading environment.

The proposal is set to be presented at BML’s Annual General Meeting scheduled for Saturday night.