Real Insurance Malawi to recapitalize

In keeping up with the requirements of the Central Bank, Real Insurance Company of Malawi is taking steps towards recapitalization.

In a statement signed by Company Secretary Ellection Mlaviwa says the company wants to increase its capital and adopt a formula for the calculation of dividends.

The company is yet to give out dividends to its shareholders since it was listed on the Malawi Stock Exchange over four years ago.

Currently, the company has a capital of one hundred and fifty Million Kwacha through the 375 Million ordinary shares in issue, at a value of 40 Tambala each.

Under the proposed set up, the capital will increase to five hundred and fifty Million Kwacha of 400 Million preference shares, valued at 1 Kwacha each.

The proposal will be made at its Annual General Meeting slated for 11 December in Blantyre.

Most firms on the MSE have already complied with the Reserve Bank of Malawi requirement that they increase their capital to meet the central bank’s regulation.