Oman Qatar’s initial public offering gets encouraging response
MUSCAT: There is a growing investor interest in Oman Qatar Insurance Company’s (OQIC) initial public offering, which was floated on September 6.
The company hosted an investor roadshow in Muscat on September 18 and is planning to hold a roadshow event in Salalah.
The roadshows 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 or the Group) interacted with the Muscat roadshow attendees and the media, and received a positive response on the IPO.
“OQIC has been playing a leading role in the insurance sector in Oman and brings with is strong credentials and the backing of its parent, QIC, which is the largest insurance group in the Mena region,” said Khalaf Ahmed Al Mannai, Chairman, OQIC Insurance Co.
“A number of reasons make this a highly compelling investment opportunity – such as the strong and experienced founders with an insurance industry track record of over 50 years, proven performance and a welldefined growth strategy, prudent investment management and operational excellence. Our highly diversified set of distribution channels in Oman, including digital, branches and bancassurance, along with our focus on select set of profitable segments differentiates the company from the other participants in the Omani insurance industry.”
“We are extremely pleased with the strong interest and enthusiasm around the IPO of OQIC, which is a reflecting of the fundamental strength of our Company and its compelling investment case,” noted Navin Kumar, CEO of OQIC.
OQIC is offering 25 million shares at a price of 160 baisas per share, (comprising a nominal value of 100 baisas per share, premium of 58 baias per share and an expense of 2 baisas per share)
Following the IPO, the company expects to generate a 5-year average dividend yield of 10 per cent. This compares favourably with the average dividend yield of 8 per cent for the insurance companies currently listed on the Muscat Securities Market. OQIC expects to pay its first dividend following the IPO in April 2018. The IPO is priced at a discount of about 14 per cent (P/B) to national peers.
The IPO subscription period will close on October 5, 2017.
Subscription
Application form for the IPO is available for collection at any branches of the subscription banks - Bank Dhofar, National Bank of Oman and Oman Arab Bank.