Al Ahlia IPO attracts strong response from investors
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.
Al Ahlia Insurance Co organised a media briefing on its IPO on Thursday