Al Ahlia Insurance’s IPO raises OMR18 million

Muscat: Al Ahlia Insurance Company’s OMR7.5 million-Initial Public Offering (IPO), which closed subscription on August 2, was subscribed by 2.43 times.
According to preliminary estimates, the IPO has raised around OMR18.2 million, indicating strong demand from both the investing public and institutional investors to the first share offer on the Muscat bourse this year, said sources familiar with the issue at the Capital Market Authority (CMA). The company’s shares will be listed on the Muscat Securities Market (MSM) on August 17.
Al Ahlia Insurance Company offered 25 per cent of its total share capital, or 25 million shares, at a price of 300 baisas per share, the company said in a press release. Bank Muscat’s Investment Banking division was the financial advisor and the sole issue manager for the IPO.
“The share offer was comfortably oversubscribed and has attracted strong levels of demand from both retail and institutional investors across the country,” said the company release. The offer price of 300 baisa per share implies an opening market capitalisation of OMR30 million.”
“We are proud and delighted by the response we have received from such a wide range of investors in Oman. The overwhelming support and warm welcome we have received reflects the confidence in Al Ahlia’s differentiated business model and recognises this unique opportunity to invest in an established and profitable insurance company offering an attractive projected dividend yield,” said Lloyd East, regional chief executive officer, RSA (Middle East) and managing director of Al Ahlia Insurance.
“We are thrilled to welcome our new institutional and individual investors into the fold of Al Ahlia. We would like to thank Bank Muscat’s investment banking team for managing the IPO and making this issue a success, despite of the challenging market conditions and also take this opportunity to extend our sincere thanks to all other partners for managing the IPO process in an efficient manner.”
Al Ahlia Insurance Company SAOG (under transformation), the leading property and casualty insurance company of Oman, is backed by strong promoters led by RSA Insurance Group and well supported by experienced local shareholders, such as Ominvest, WJ Towell Group and the OHI Group.