The Capital Market Development Authority (CMDA) and the Maldives Stock Exchange have stated that Bank of Maldives’ (BML) decision to undergo a stock split will significantly develop and expand the local capital market. BML’s Board has proposed a corporate action involving the issuance of two bonus shares for every existing share, followed by a 1:10 stock split. Under this restructuring, a shareholder currently holding 100 shares will see their holdings increase to 3,000 shares, while the nominal face value per share will be adjusted from MVR 50 to MVR 5.
The primary objective of this move is to make the shares more affordable for the public, thereby increasing trading liquidity and potentially tripling or quadrupling the bank’s market capitalization in the future. Furthermore, authorities highlighted that such strategic changes serve as a model for other listed companies, ultimately broadening the opportunities for retail investors to participate in the market.
