BML's share restructuring will enhance the capital market - CMDA CEO

The CEO of the Capital Market Development Authority (CMDA), Mohamed Hussain Maniku, has stated that the upcoming changes to Bank of Maldives (BML) shares will further strengthen and develop the stock market.

Maniku stated that splitting BML shares at a 1:10 ratio will increase the number of shares held by existing shareholders and lower the price per share. He noted that this move is expected to boost trading volume and bring positive changes to the stock market. Maniku further explained that while share prices are currently maintained at a high level, reducing the price per share will enhance the bank's growth potential.

"Once the share split proposed by the bank is implemented and the share price decreases, I anticipate that the bank's growth and market capitalization could potentially triple or even quadruple in the near future," Maniku stated.

Maniku stated that the Capital Market Development Authority (CMDA) encourages other listed companies to follow Bank of Maldives' example in restructuring their shares. He further noted that such adjustments would be mutually beneficial for both the general public and the companies involved.

Speaking during the program, Mohamed Aushan Latheef, Managing Director and Group CEO of the Maldives Stock Exchange, stated that the reduction in the face value of BML shares is expected to make them more affordable, thereby boosting trading activity in the stock market.

Reflecting on the history of the stock market, Aushan noted that while there is typically high demand from buyers, the number of sellers has remained low. He expressed confidence that Bank of Maldives' (BML) recent decision will encourage more shareholders to sell, thereby significantly boosting market activity.

Illustrating with an example, Aushan explained that a shareholder owning 100 shares in BML might currently be reluctant to sell due to the attractive dividend returns. However, under this change, those 100 shares would convert into 3,000 shares, significantly increasing the likelihood of the shareholder opting to sell a portion of their holdings.

"Following this corporate decision by BML, I anticipate a decline in the market share price. This is expected to create greater opportunities for new investors to acquire shares and lead to increased market activity," Aushan stated.

BML to introduce changes to shareholding structure

• The Board of Directors has proposed to the Annual General Meeting the issuance of two bonus shares for every existing share with a face value of MVR 50 held by shareholders as of the "Record Date" (March 18, 2026). A bonus share issue involves distributing additional shares to current shareholders at no cost, proportionate to their existing holdings. For instance, a shareholder owning 100 shares would receive an additional 200 shares, bringing their total shareholding to 300.
• The next step involves a 1-to-10 stock split. A stock split increases the number of shares currently held by shareholders while proportionally reducing the price per share.
• Under this ratio, the bank's stock split, combined with the bonus shares, will result in each existing share being divided into 10 units.
• Consequently, an investor currently holding 100 shares, for example, will see their total holdings increase to 3,000 shares.
• Consequently, the nominal value of each share will be reduced from MVR 50 to MVR 5. This adjustment will not result in any change to the total value of the shareholders' holdings.

The objectives behind the bank's decision to split its shares are:

• Facilitating the acquisition of bank shares for investors at a discounted rate.
• Encouraging increased investor participation in the stock market
• Facilitating market liquidity and stock market activities.
• Preparing for the potential issuance of additional shares in the future.

The reduction in share prices is expected to encourage greater investor participation in the market, thereby enhancing liquidity and boosting overall trading activity.