The Bank of Maldives has proposed a comprehensive equity restructuring that financial regulators contend will serve as a critical catalyst for the nation’s developing capital market. The initiative, involving a coordinated bonus share issuance and a subsequent ten-for-one stock split, seeks to address a persistent lack of liquidity by recalibrating the nominal value of shares to lower barriers for retail investors.
Mohamed Hussain Manik, the chief executive of the Capital Market Development Authority, characterised the proposal as a mechanical adjustment essential to unlocking the bank’s growth potential. Speaking on the PSM News programme ‘Raajje Miadhu’, Manik observed that the current share price has effectively discouraged participation. "Once the shares are split in accordance with the bank’s proposal, the share price will decrease and trading will commence," Manik stated. He predicted that "in the foreseeable future, it is highly possible for the bank’s growth and market capitalisation to triple or even quadruple."
The restructuring is designed to correct a structural imbalance defined by robust buyer demand and a scarcity of sellers, according to Mohamed Aushan Latheef, the managing director of the Maldives Stock Exchange. Aushan noted that the reduction in face value will make equity "significantly more accessible", incentivising current shareholders to trade.
Under the framework awaiting formal approval, the bank will first issue two bonus shares for every unit held on 18 March 2026. A subsequent ten-for-one split will then divide each share into fractional units, reducing the nominal face value from USD 3.24 to USD 0.32. While the share count will rise from 100 to 3,000 units, the bank confirmed the aggregate value of underlying equity will remain unaltered.