BML to Triple Shares, Ease Entry with Bonus Issue and Share Split

Bank of Maldives Plc has proposed a bonus share issuance and a 1:10 share split, alongside a dividend payout, in a move aimed at improving investor access and enhancing trading activity on the Maldives Stock Exchange. The proposals are subject to shareholder approval at the Bank’s upcoming Annual General Meeting.

The Bank announced a dividend of MVR 60 per share and a bonus share issuance of two shares for every one share held. The bonus issue will be funded through retained earnings and will increase the Bank’s issued share capital threefold.

In addition, the Bank has proposed a 1:10 share split, under which each share will be divided into ten. As a result, the face value per share will decrease from MVR 50 to MVR 5. While the number of shares held by investors will increase significantly, the overall value of their investment will remain unchanged, as the share price will adjust proportionately.

The Bank stated that the combined measures are intended to make its shares more affordable, encourage broader investor participation, and improve market liquidity. The move is also expected to support higher trading activity and strengthen the Bank’s positioning for potential future capital raising.

Market participants say the changes could have a notable impact on accessibility, particularly for new investors. Managing Director and CEO of Maldives Stock Exchange, Mohamed Aushan Latheef, noted that BML shares have traditionally traded at significantly higher levels compared to most listed companies, which are generally priced between MVR 40 and MVR 150.

He added that the proposed restructuring is expected to open new opportunities for young investors looking to enter the stock market, as lower share prices typically enable broader participation and increased market activity.

For shareholders, the changes will significantly increase the number of shares held. For example, an investor holding 100 shares will receive 200 additional shares through the bonus issuance, bringing the total to 300 shares. Following the share split, this will increase further to 3,000 shares.

The Bank emphasised that these actions will not dilute shareholder ownership, with all investors maintaining the same proportional stake in the institution before and after the bonus issuance and share split.

The record date has been set for 18 March 2026. Shareholders listed on the register as of this date will be eligible for the dividend, bonus shares, and participation in the proposed share split, subject to approval at the AGM.

According to the Bank, the share split is expected to be completed within 21 working days following shareholder approval, after which the updated shares will be credited to shareholder accounts and made available for trading on the Maldives Stock Exchange.

The development reflects ongoing efforts to deepen capital markets in the Maldives, with increased focus on improving retail investor participation and expanding access to publicly traded shares.