Al Ah­lia In­sur­ance IPO over­sub­scribed

The RO7.5mn of­fer­ing at­tracted strong de­mand from both re­tail and in­sti­tu­tional in­vestors

Muscat Daily - - FRONT PAGE - Our Cor­re­spon­dent

The RO7.5mn of­fer­ing was com­fort­ably over­sub­scribed and at­tracted strong lev­els of de­mand from re­tail and in­sti­tu­tional in­vestors

Al Ah­lia In­sur­ance Com­pany, the lead­ing prop­erty and ca­su­alty in­surer in Oman, on Mon­day an­nounced the suc­cess­ful clo­sure of its ini­tial pub­lic of­fer­ing (IPO).

The RO7.5mn of­fer­ing was com­fort­ably over­sub­scribed and at­tracted strong lev­els of de­mand from both re­tail and in­sti­tu­tional in­vestors across the coun­try, mak­ing it the first suc­cess­ful IPO in 2017, Al Ah­lia said in a press re­lease.

Al Ah­lia had of­fered 25mn ex­ist­ing or­di­nary shares (or 25 per cent of to­tal share cap­i­tal) at a price of 300bz per share. The sub­scrip­tion pe­riod for the is­sue closed on Wed­nes­day. Bank Mus­cat’s in­vest­ment bank­ing di­vi­sion was the fi­nan­cial ad­vi­sor and sole is­sue man­ager for the IPO.

The of­fer price of 300bz per share im­plies an open­ing mar­ket cap­i­tal­i­sa­tion of RO30mn for Al Ah­lia. Trad­ing of the com­pany’s shares is set to com­mence on the Mus­cat Se­cu­ri­ties Mar­ket on or around Au­gust 17.

Com­ment­ing on the suc­cess­ful clos­ing of the IPO, Lloyd East, re­gional CEO, RSA (Mid­dle East) and manag­ing direc­tor of Al Ah­lia said: “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.”

“We are thrilled to wel­come our new in­sti­tu­tional and in­di­vid­ual in­vestors into the fold of Al Ah­lia. We would like to thank Bank Mus­cat in­vest­ment bank­ing team for manag­ing the IPO and mak­ing this is­sue a suc­cess in spite of the chal­leng­ing mar­ket con­di­tions. We take this op­por­tu­nity to ex­tend our sin­cere thanks to all other part­ners for manag­ing the IPO process in an ef­fi­cient man­ner and also the Cap­i­tal Mar­ket Au­thor­ity for their con­tin­ued sup­port and guid­ance.”

Al Ah­lia is backed by strong pro­mot­ers led by RSA In­sur­ance Group and well sup­ported by ex­pe­ri­enced lo­cal share­hold­ers namely Omin­vest, WJ Tow­ell Group and OHI Group.

Lloyd East

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