The Bank of Maldives (BML) has unveiled a sweeping capital restructuring plan that includes a dividend payout, bonus share issuance, and a share split, subject to shareholder approval at its upcoming Annual General Meeting.
The bank announced a proposed dividend of MVR 60 per share, alongside a bonus share issuance of two shares for every one held, and a 1:10 share split, in a move aimed at strengthening its capital base and improving market accessibility.
Capital Restructuring to Drive Growth
BML stated that the combined initiatives are designed to reinforce its financial position while making its shares more affordable to a wider investor base. The bank expects the measures to enhance trading liquidity, increase investor participation, and support long-term growth prospects.
The bonus share issuance will be funded through retained earnings, effectively tripling the bank’s issued share capital without requiring additional investment from shareholders.
How the Bonus and Share Split Work
Under the proposed structure, shareholders will first receive bonus shares at a 1:2 ratio, meaning two additional shares for each share currently held. Following this, all shares, including the newly issued ones, will undergo a 1:10 split, increasing the total number of shares while proportionately reducing the price per share.
For example, a shareholder holding 100 shares will receive 200 bonus shares, bringing the total to 300 shares. After the share split, this will expand to 3,000 shares.
Despite the increase in share count, the total value of the investment remains unchanged, as the price per share adjusts accordingly.
Face Value Adjustment and Market Impact
As part of the split, the face value of each share will decrease from MVR 50 to MVR 5. BML noted that lower share prices typically attract a broader range of investors, which can stimulate trading activity and improve overall market efficiency.
The bank also signaled that the move positions it strategically for potential future equity issuances.
No Dilution of Ownership
BML emphasized that the restructuring will not dilute shareholder ownership. All investors will retain their proportional stake in the bank before and after the bonus issuance and share split.
Key Date and Timeline
The record date has been set for 18 March 2026, determining eligibility for the dividend, bonus shares, and participation in the share split.
Following shareholder approval at the AGM, the bank will complete regulatory formalities with the Maldives Stock Exchange. The process, including the crediting of shares to investor accounts, is expected to be finalized within 21 working days.
Valuation Adjustment Explained
The bank illustrated that while the number of shares increases significantly, the book value per share will adjust proportionately. For instance, a share with a book value of MVR 3,047.7 would reduce to MVR 1,015.9 after the bonus issuance, and further to MVR 101.59 following the share split.
Investor Access
BML confirmed that further updates will be communicated through official investor channels. Shareholders may also contact the bank’s Corporate Affairs Unit for additional details.
The proposed restructuring marks one of the most significant capital adjustments by BML in recent years, signaling a strategic push to deepen market participation and modernize its equity structure.
