Vi­sion In­sur­ance Com­pany to make MSM de­but on Au­gust 23

Muscat Daily - - BUSINESS -

The shares of Vi­sion In­sur­ance Co, which launched its RO4mn ini­tial pub­lic of­fer­ing (IPO) on July 9, are pro­posed to be listed on the Mus­cat Se­cu­ri­ties Mar­ket (MSM) on Au­gust 23. Sub­scrip­tion for Vi­sion’s IPO will be closed on Au­gust 7.

Vi­sion is of­fer­ing 25mn shares (rep­re­sent­ing 25 per cent of the paid up share cap­i­tal) to in­vest­ing pub­lic at a price of 162bz. The of­fer price com­prised of a nom­i­nal value of 100bz per share, share pre­mium of 60bz and of­fer ex­penses of 2bz per share.

The com­pany has pro­jected a div­i­dend yield of ten per cent to the IPO sub­scribers for 2017. It aims to of­fer an an­nu­alised div­i­dend yield of 9.25 per cent for 2019 and 2020.

Speak­ing at an IPO pre­sen­ta­tion which was at­tended by in­vestors, an­a­lysts and me­di­a­per­sons on Tues­day, P R Ra­makr­ish­nan, CEO of Vi­sion In­sur­ance, said the com­pany has evolved into a dom­i­nant lo­cal in­surer with an over­all mar­ket share of five per cent.

“The year 2017 is a mile­stone year for Vi­sion as go­ing pub­lic co­in­cides with ten suc­cess­ful years of growth since the com­pany’s in­cor­po­ra­tion in 2007,” Ra­makr­ish­nan added.

To com­ply with the min­i­mum cap­i­tal re­quire­ment Vi­sion in­creased its paid up share cap­i­tal from RO5.5mn at the end of 2016 to RO10mn dur­ing 2017 by a com­bi­na­tion of bonus shares and rights shares to ex­ist­ing share­hold­ers.

“The rais­ing of the min­i­mum cap­i­tal will fur­ther con­sol­i­date Vi­sion’s strength as a ma­ture in­surer and will sup­port the com­pany’s growth plans. We have suc­cess­fully built a strong in­fras­truc­ture of peo­ple, tech­nol­ogy and as­sets to sup­port our growth as­pi­ra­tions,” Ra­makr­ish­nan said.

“We are to­day a US$60mn com­pany. We want to be a US$100mn com­pany over the com­ing five years,” he added.

Gross pre­mium writ­ten by Vi­sion in­creased at an av­er­age growth of 15 per cent year-onyear, from RO16.8mn in 2014 to RO22.1mn in 2016. Its profit af­ter tax for 2016 was at RO1.19mn.

Ah­libank is the is­sue man­ager for Vi­sion’s IPO, while sub­scrip­tion banks in­clude Ah­libank, Oman Arab Bank, Na­tional Bank of Oman and Bank So­har.

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