Oman- Al Ahlia Insurance IPO opens for subscription
(MENAFN- Muscat Daily) Muscat- Al Ahlia Insurance Company SAOG (under transformation) announced the opening of its initial public offering (IPO) for subscription.
Al Ahlia's IPO, which opened for subscription on July 4, is the first IPO on the Muscat Securities market in the last two years. The IPO will close on August 2. It is open for subscription to Omani and non-Omani investors including individual and institutional investors, a press release said.
Al Ahlia is offering 25mn shares at an offer price of 300bz per share (comprising a nominal value of 100bz and a premium of 200bz). The IPO represents an offer of 25 per cent of the share capital of the company. As much as 65 per cent of the offered shares in the IPO have been reserved for small investors applying from a minimum of 1,000 shares to a maximum of 250,000 shares. Remaining 35 per cent of the offered shares are reserved for large investors applying for a minimum of 250,100 shares up to a maximum of 2.5mn shares.
Bank Muscat is the financial advisor and issue manager for the IPO. The subscription banks are Bank Muscat, National Bank of Oman, Oman Arab Bank, BankDhofar, Bank Sohar and ahlibank.
Commenting on the opening of the IPO, Lloyd East, regional CEO, RSA (Middle East) and managing director of Al Ahlia said, 'The Al Ahlia IPO is distinctive, as it represents the combined strength of being a well-established Omani institution and the expertise of a global leader in the insurance business: RSA Insurance Group.'
At the IPO price, the company offers an attractive average projected dividend yield of 9.3 per cent for the first four years. The first dividend of 11bz is expected to be paid by the company in August/September this year with semi-annual dividend distributions thereafter.
Al Ahlia is a leading property and casualty insurer in Oman backed by strong promoters led by RSA Insurance Group and well supported by experienced local shareholders. The company also benefits from having three well reputed Omani shareholders namely Ominvest, WJ Towell Group and OHI Group.
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