Government prepares for HDC Initial Public Offering

The Minister of Housing, Land and Urban Development Dr. Ali Haidar on Sunday said President Dr. Mohamed Muizzu has plans of facilitating an Initial Public Offering (IPO) of the Housing Development Corporation (HDC).

The minister revealed this plan during Sunday’s press conference at the President’s Office after the cabinet meeting.

At Sunday’s cabinet, the ministers decided on merging Fahi Dhiriulhun Corporation (FDC) with HDC. Detailing on this, the minister said that all social housing initiatives of the government will be carried out under FDC prospectively.

He added that HDC will take a central role in the development of the urban centers across the Maldives – another key initiative of the current administration.

“FDC will become the main actor in overseeing and managing all social housing initiatives across the Maldives, including Male’ area,” Haidar said.

The merger of FDC and HDC is aligned the government’s objectives of reducing wastage of state expenditure, integrate financially detrimental SOEs with profitable corporations that fall within the same business interests and activities, and increase revenue scope for the corporations and the state.

Besides the merger, President Muizzu has plans to introduce HDC’s IPO to attract general shareholders.

“While the decision was not formalized at today’s cabinet meeting, the president envisions public to hold shares in HDC making it a public limited company,” the minister added.

While the housing minister announced the government’s intended plan, he did not specify a date for the IPO.

The management and all the other aspects of HDC fall under the purview of HDC, with the exception of municipal works.