BML share restructuring to drive capital market growth, says CMDA

Chief Executive Officer of the Capital Market Development Authority (CMDA), Mohamed Hussain Manik, has said that the restructuring of Bank of Maldives (BML) shares is expected to deepen and further develop the local capital market.

Speaking on PSM’s Raajje Miadhu programme on Tuesday night, Manik explained that the proposed changes — including a bonus issue and share split — will increase the number of shares held by investors and make them more affordable, thereby encouraging greater participation in the market.

He noted that BML shares have historically traded at relatively high prices, which can limit accessibility for smaller investors. According to Manik, reducing the price per share through the restructuring will help broaden investor participation and stimulate trading activity, while also supporting the bank’s long-term growth prospects.

Manik also urged other listed companies to consider similar measures, stating that such initiatives would benefit both the general public and corporates by improving market accessibility and liquidity.

Managing Director and Chief Executive Officer of the Maldives Stock Exchange, Mohamed Aushan Latheef, echoed these views, stating that the reduction in the nominal (face) value of BML shares is expected to make them more accessible and increase trading on the exchange.

He noted that the market currently sees stronger demand from buyers than sellers, which has constrained trading volumes. Aushan said the restructuring could help address this imbalance by increasing the number of shares in circulation and making it more likely for shareholders to trade part of their holdings.

“For instance, an investor holding 100 shares may be reluctant to sell due to strong returns. However, following the bonus issue and share split, that holding would increase to around 3,000 shares, creating more flexibility and a higher likelihood of trading,” he said.

Under the proposal, BML’s Board will first issue two bonus shares for every ordinary share with a face value of MVR 50 held by shareholders as of the record date of March 18, 2026. A bonus issue involves the distribution of additional shares to existing shareholders at no cost, in proportion to their current holdings. As an example, a shareholder holding 100 shares will receive an additional 200 shares, increasing their total to 300 shares.

Following the bonus issue, the bank will implement a 1-for-10 share split, which will further increase the number of shares while proportionally reducing the price per share. 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. This adjustment will not affect the total value of shareholders’ investments, but is expected to improve affordability and market participation.

BML stated that the key objectives of the restructuring are to make its shares more accessible to investors, encourage broader participation in the stock market, enhance liquidity and trading activity, and position the bank for potential future capital raising. Market officials believe that the lower share price and increased number of shares will contribute to a more active and liquid market.

These changes will be presented at its AGM this Saturday night.