OQIC likely to list shares on October 19; confident about strong public response

Oman Qatar Insurance Company (OQIC) whose initial public offering (IPO) is on the offer, plans to do listing on October 19, and is confident about getting the required subscription, a senior company official said.

The IPO was opened for subscription on September 5, and will close on October 5.

OQIC, through its IPO, is offering 25mn shares at an offer price of 160bz per share (comprising a nominal value of 100bz, premium of 58bz and offer expenses of 2bz per share). The IPO represents an offer of 25 per cent of the total share capital of the company.

Speaking at an event to address potential investors, Navin Kumar, chief executive officer of OQIC said, so far they have received very good response for the IPO, and is very confident about the success of the offer.

When asked about listing, Kumar said, the company plans to list shares on Muscat Securities Market on October 19, around two weeks after the close of the issue.

The Company hosted an investor road show in Muscat on Monday and is planning to hold a roadshow event in Salalah too.

The roadshow’s attendees include a broad range of investor groups, including institutional investors, high-net worth individuals and established family offices, and investment analysts from brokerage houses. The senior management teams of OQIC and its parent Qatar Insurance Company (QIC) interacted with the Muscat road show attendees.

Speaking about the strength of the issue, Kumar said, “For prospective shareholders this company offers stability as the company getting expertise from its parent company.”

He said the company’s performance has been very good, and they are expecting a compounded annual growth rate of over 14 per cent in the next five years.

In 2016, the company earned a gross premium of RO21.4mn, and in the current year it expect premiums to rise to RO27.2mn. By 2021, the company expects this figure to cross RO43mn.

On future prospects of growth in the backdrop of softness in crude prices, Kumar said health insurance is likely to boost growth in coming years, and they have secured three-year large group medical contract from a leading participant in the Oman’s aviation industry.

Established in 2004, OQIC is a subsidiary of Qatar Insurance Company and provides life and general insurance cover in Oman. The company operates through five retail branches.