The Bank of Maldives has proposed a comprehensive equity restructuring that financial regulators believe could provide important momentum for the country’s developing capital market, while making the bank’s shares more accessible to a broader base of investors. The proposal combines a bonus share issuance with a ten-for-one stock split, a structure designed to improve market liquidity and reduce the practical barriers that have limited wider retail participation in the bank’s equity.
The initiative comes at a time when the Maldivian capital market is seeking deeper participation, stronger trading activity, and greater public engagement. According to market officials, the current market price of the bank’s shares has remained beyond the reach of many potential retail investors, limiting the volume of transactions and reducing overall market dynamism. By recalibrating the nominal value of the shares, the proposed restructuring is expected to create a more active trading environment and encourage broader ownership in one of the country’s most prominent financial institutions.
Mohamed Hussain Manik, Chief Executive of the Capital Market Development Authority, described the proposal as a mechanical adjustment with potentially significant implications for the future performance of the bank and the wider market. Speaking on the PSM News programme “Raajje Miadhu,” Manik said the present share price has effectively discouraged participation by many investors. He noted that once the shares are split in line with the bank’s proposal, the share price will decrease and trading activity is expected to begin in a more meaningful way. He further expressed confidence that, in the foreseeable future, the bank’s growth and market capitalisation could potentially triple or even quadruple.
From a market structure perspective, the proposal is also intended to address an imbalance between strong buyer interest and a limited supply of sellers. Mohamed Aushan Latheef, Managing Director of the Maldives Stock Exchange, said the restructuring would help correct this issue by making the equity significantly more accessible. He indicated that lowering the face value of the shares is expected to encourage current shareholders to trade more actively, while also opening the market to new participants who may previously have been deterred by the higher entry price.
Under the framework currently awaiting formal approval, the bank will first issue two bonus shares for every share held as of 18 March 2026. Following that step, a ten-for-one stock split will be carried out, dividing each share into smaller units and reducing the nominal face value from USD 3.24 to USD 0.32. As a result, the total number of shares will rise from 100 units to 3,000 units. The bank has confirmed, however, that while the number of shares will increase substantially, the overall value of the underlying equity will remain unchanged, ensuring that the restructuring does not dilute total shareholder value.
The proposal is being viewed positively as a practical step toward strengthening confidence in the Maldivian equity market and creating a more inclusive investment environment. For retail investors, the lower nominal value could provide an opportunity to participate more easily in the growth of a leading national institution. For the broader financial system, the restructuring may support increased trading activity, improved price discovery, and stronger visibility for listed securities. Taken together, the plan reflects a forward-looking effort to modernise market participation and position the Bank of Maldives as an even more active driver of financial sector development in the country.
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