The restructuring of shares of Bank of Maldives (BML), including a bonus share issue and share split, is expected to boost stock market activity and increase investor participation, according to Capital Market Development Authority (CMDA) CEO Mohamed Hussain Manik.

Speaking on State media, CEO Manik said the planned division of BML shares at a ratio of 1 to 10 would increase the number of shares held by existing shareholders while reducing the price per share, making them more accessible to a wider range of investors. He noted that while BML shares are currently priced at a high level, a reduction in price could support the bank’s growth potential, adding that its market capitalisation could expand significantly in the near future.

CEO Manik also said the CMDA is encouraging other listed companies to consider similar adjustments, noting that such measures would benefit both companies and the general public by improving participation in the capital market.

Meanwhile, Managing Director and Group CEO of the Maldives Stock Exchange Mohamed Aushan Latheef said the reduction in the face value of BML shares is expected to increase market transactions. He noted that while there is strong demand from buyers, fewer shareholders are willing to sell, and the increase in the number of shares could improve liquidity and trading activity in the market.

Under the proposed changes, shareholders will receive two bonus shares for every one share held as of the record date, followed by a share split at a ratio of 1 to 10. As a result, a shareholder holding 100 shares would see their holdings increase to 3,000 shares, while the face value of each share will be reduced from MVR 50 to MVR 5 without affecting the total value of their investment.

The bank stated that the changes are aimed at making shares more affordable, encouraging investor participation, improving market liquidity and facilitating future capital-raising efforts.