Edward Rizzo has laid out a plan for the Government of Malta to sell most of its stake in the Malta Stock Exchange plc, proposing that the state divest at least 80% of its shareholding through a three-part process.

The first step would bring in a strategic investor, ideally an established international exchange group chosen through a competitive international tender. The second would open the door to MSE member firms, tying market participants’ interests to the long-term success of the exchange, alongside other financial investors, including international financial institutions, to support efforts to internationalise the Maltese equity market. The third would be an initial public offering on the MSE’s Regulated Main Market, giving the Maltese investing public the chance to become direct owners of the exchange.

The main aim, Rizzo argues, is to widen the MSE’s reach through a strategic partner with a business development mindset, one geared towards regular engagement with international institutional investors and to improve custody links so more foreign investors can take part. He also frames the move as a chance to revive what he calls the moribund primary equity market in Malta and to let investors share in the exchange’s success and future growth.

Rizzo notes that the MSE’s profitability has been rising in recent years, which he says means the government should raise a reasonable sum from selling its stake.

The Malta Stock Exchange, known in Maltese as the Borża ta’ Malta, was established in 1992 and is fully owned by the Maltese Government. It supports the listing and trading of equities, corporate and government bonds and green bonds and runs Prospects, an SME-oriented capital market regulated by the MSE that lets smaller companies in Malta and overseas raise capital through equity or bond issues under a lighter regulatory framework.

Rizzo has previously pointed to weak participation in MSE listed shares, noting that less than 4% of the population in Malta holds shares in Bank of Valletta plc, the most widely held company on the Borża.