Oman Qatar Insurance offers 25 mln shares to raise $10.4 mln
Source: Middle East Insurance Review | Oct 2017
Oman Qatar Insurance Company (OQIC) has launched its initial public offering (IPO), offering 25 million shares representing 25% of the existing total shares of the company. The offer would raise OMR4 million (US$10.4 million).
The offer price is 160 baisas (US$0.42) per share (comprising a nominal value of 100 baisas per share, premium of 58 baisas per share and offer expenses of 2 baisas per share), according to a media release by the company.
The IPO, which closed on 5 October 2017, was opened to both Omani and non-Omani investors, and to individual and institutional investors. As many as 65% of the shares available for subscription have been reserved for investors applying for a minimum of 1,000 shares and a maximum of 100,000 shares, with the balance 35% reserved for investors applying for a minimum of 100,100 shares and up to a maximum of 2,500,000 shares.
Mr Navin Kumar, CEO of OQIC, said: “In recent years, the company has made positive strides to become one of the leading participants in the insurance sector in Oman. The IPO is unique thanks to the backing of OQIC’s parent, Qatar Insurance Company, a global player that is the largest insurance and reinsurance group in the Middle East region. OQIC’s IPO will encompass the company’s core values of security, stability and strength.”
Following the IPO, the company expects to generate a five-year average dividend yield of 10%. This compares favourably with the average dividend yield of 8% for the insurers currently listed on the Muscat Securities Market. OQIC expects to pay its first dividend following the IPO in April 2018.
Established in 2004, OQIC is a subsidiary of Qatar Insurance Company and provides life and general insurance cover in Oman. The insurer operates through five retail branches and digital channels and has more than 30 sales points through agencies and brokers. M
OMR1 = US$2.60