With the record profit achieved by the Bank of Maldives (BML) last year, two significant changes to the bank’s share structure have been announced.
The first change proposed at the BML Annual General Meeting held tonight at Barceló Nasandhura is to issue two bonus shares for every existing share with a face value of MVR 50 held by shareholders as of March 18, 2026.
Issuing bonus shares means distributing additional shares at no cost based on the proportion of shares currently held by shareholders. For example, for a person who has 100 shares in BML, with the additional 200 shares issued, the total number of shares will increase to 300.
The second and most significant change being brought to BML’s share structure is splitting the shares at a "1 to 10 ratio." By splitting the bank's shares in this proportion, along with the bonus shares, each existing share will be split into 10 parts. Therefore, for example, the total shares of a person who currently has 100 shares will change to 3,000 shares.
Benefits of BML shares to a large part of the population
Such a change brought to a company’s share structure is a powerful strategic move used in reshaping that company’s shares in the stock market.
As the national bank, BML has an immensely large stake in the Maldivian productivity, the impact of such a strong step will affect the entire economy.
BML’s decision to implement the share split will be a broad and positive step designed to increase the bank’s liquidity, expand public participation, and strengthen the bank’s market leadership.
This is why the CEO of the Capital Market Development Authority (CMDA), Mohamed Hussain Manik, also believes that the stock market will develop further with this change brought by BML.
Often, a high face value of a share acts as a barrier for small and retail investors, and because of that, the business of buying and selling shares in the stock market decreases.
Speaking on PSM’s "Raajje Miadhu" program, Manik also noted this, stating that by splitting BML’s shares at a "1 to 10 ratio," the number of shares currently held by shareholders will increase, and as the price per share becomes cheaper, the volume of buying and selling shares will increase.
As an example, considering from the perspective of a person who currently has 100 shares, the increase of their shares to 3,000 means the degree of hesitation to sell some of those in the stock market will decrease.
The Managing Director and Group CEO of the Maldives Stock Exchange, Mohamed Aushan Latheef, also said that the decrease in the face value of BML shares is expected to bring shares within reach and increase transactions in the stock market.
"In connection with this corporate decision by BML, I am looking at the market price of the share also going down and the opportunity for new shareholders to buy shares increasing, and activities going up," Aushan said.
On the other hand, the opportunity for the common person to invest in the shares of a bank like BML is also facilitated. Receiving the opportunity to invest from a lower entry point means increasing the participation in the ownership of the country's largest financial institution for a large part of the population, including ordinary employees and small businessmen.
BML’s liquidity will increase, and sustainability will be ensured
In addition to the public, the positive impact of this change brought to the share structure will also affect BML.
By splitting shares and making the price of a share cheaper, BML will be able to obtain more equity, increase the interest of a wide range of investors, and the increase in the activity of BML shares in the stock market is something that will reveal the true value of BML.
As the shares become liquid and the opportunity for many people to obtain them is facilitated, the register of shareholders will expand, a more stable and diversified investor base will be created, and risks will decrease.
Manik also believes that the prices at which shares are sold are currently held at a high price, but if the share price decreases, the bank’s ‘growth potential’ will increase.
"When the share split happens as proposed by the bank and the share price goes down and it starts selling, my expectation is that in the not too distant future, the bank’s growth and market capitalization could even reach three or four times," Manik said.
Due to this advanced market profile, the bank’s corporate image will increase, providing confidence in future growth opportunities and assurance in shareholder-friendly policies.
Furthermore, as a large pool of potential investors are people who are already familiar with and active in that stock, it also facilitates the opportunity for BML to shape capital-raising activities profitably in the future.
By its nature, splitting shares is not something done only in name. This is multiplying the available opportunities.
It is a strong step taken for the development of the Maldivian stock market, for the financial participation of the public, and to ensure the sustainability of BML as a top leader in the Maldivian economy.
