BML Equity Restructuring Aims to Triple Market Value, Boost Retail Investment

In a strategic move to revitalize the Maldives' capital market, the Bank of Maldives (BML) has proposed an equity restructuring plan that regulators say will enhance liquidity and broaden access for retail investors. The initiative combines a bonus share issuance with a stock split to significantly lower share prices, addressing a key barrier to market participation. Mohamed Hussain Manik, CEO of the Capital Market Development Authority, described the proposal as essential for unlocking growth. Speaking on PSM News' 'Raajje Miadhu', Manik noted that the current high share price has deterred trading. 'Once the shares are split, the price will decrease and trading will commence,' he stated, predicting that BML's market capitalisation could triple or quadruple in the foreseeable future. Mohamed Aushan Latheef, Managing Director of the Maldives Stock Exchange, explained that the restructuring corrects a structural imbalance of high demand and low supply. By reducing the face value, equity becomes 'significantly more accessible', incentivising shareholders to trade and boosting market fluidity. Under the plan awaiting approval, BML will first issue two bonus shares for every unit held on 18 March 2026. A subsequent ten-for-one stock split will then reduce the nominal face value from USD 3.24 to USD 0.32 per share. The total share count will rise from 100 to 3,000 units, but the aggregate equity value remains unchanged, ensuring no dilution for existing shareholders. This adjustment is poised to democratize investment in one of the nation's largest financial institutions, fostering a more inclusive and dynamic capital market.