Al Ah­lia IPO at­tracts strong re­sponse from in­vestors

Muscat Daily - - BUSINESS -

Fol­low­ing the suc­cess­ful launch of its ini­tial pub­lic of­fer­ing (IPO) ear­lier this month Al Ah­lia In­sur­ance Com­pany SAOG (un­der trans­for­ma­tion) said the in­vestors in­ter­est is gath­er­ing pace.

The IPO of­fer pe­riod will close on Au­gust 2.

The com­pany has been hold­ing sev­eral one-on-one meet­ings with key in­vestors, col­lect­ing banks, an­a­lysts and bro­ker­ages, and also hosted a me­dia brief­ing on Thurs­day fol­lowed by an in­vestor road­show. The events which were held in Mus­cat have been well at­tended by a wide cross-sec­tion of in­vestor groups, in­clud­ing in­sti­tu­tional in­vestors, high net-worth in­di­vid­u­als and es­tab­lished busi­nesses.

Lloyd East, re­gional CEO, RSA (Mid­dle East) and man­ag­ing di­rec­tor of Al Ah­lia, said: “We are very pleased with the strong in­ter­est and en­thu­si­asm sur­round­ing the IPO of Al Ah­lia. The of­fer has at­tracted sig­nif­i­cant in­ter­est amongst the in­vestor com­mu­nity in Oman, which sup­ports the key high­lights of the of­fer­ing: In­ter­na­tional parent­age from RSA Group, dis­tri­bu­tion and tech­ni­cal strength, fi­nan­cial out­per­for­mance, high stan­dards of cor­po­rate gov­er­nance, and an at­trac­tive in­vest­ment op­por­tu­nity with a div­i­dend yield that com­pares well to the peers in the in­dus­try.”

Speak­ing to re­porters East said a large num­ber of in­vestors have shown in­ter­est on the fu­ture growth of the com­pany which is sup­ported by its strong bal­ance sheet. He added that the com­pany plans to list shares on the Mus­cat Se­cu­ri­ties Mar­ket on Au­gust 14.

Top man­age­ment and board of di­rec­tors rep­re­sent­ing Al Ah­lia and its pro­mot­ers interacted with the at­ten­dees and the me­dia, and re­ceived a pos­i­tive re­sponse from in­vestors to the IPO.

An­war Ali Sul­tan, chair­man of Al Ah­lia, said, “Al Ah­lia has been a part of the re­mark­able suc­cess of Oman as a na­tion, and the com­pany is very proud of the lead­ing role it has played in the sec­tor. Al Ah­lia has the back­ing of re­puted pro­mot­ers: RSA In­sur­ance Group, Omin­vest, WJ Tow­ell Group and OHI Group. The pro­mot­ers will con­tinue to hold an ag­gre­gate of 75 per cent shares post-IPO, and will con­tinue to en­sure re­li­able man­age­ment and gov­er­nance of the com­pany.”

On growth out­look for Oman’s in­sur­ance in­dus­try, East said the in­sur­ance pen­e­tra­tion has been very low in the Omani mar­ket and there is tremen­dous op­por­tu­nity for fu­ture growth even in case of a pro­longed soft­ness in oil prices.

In the IPO, 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 com- pany.

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 2017 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.

(Mus­cat Daily)

Al Ah­lia In­sur­ance Co or­gan­ised a me­dia brief­ing on its IPO on Thurs­day

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