Oman’s stock market regulator, the Capital Market Authority (CMA), is sticking to its stipulation that local insurers launch public share offers before August 2017. This means that at least seven local insurers will have to float shares on the Muscat Securities Market (MSM) before August, reported Times of Oman.
Local insurers that are expected to list on the MSM include: Al Ahlia Insurance, Muscat Insurance, Muscat Life Insurance, Oman & Qater Insurance, National Life & General Insurance, Vision Insurance and Falcon Insurance.
“All national insurers (excluding branch operations of foreign companies) will have to go public by August, as per the law. There is no relaxation of the insurance law,” Sheikh Abdullah bin Salem Al Salmi, Executive President of the CMA, was quoted as saying.
In 2014, the Omani government directed local insurers to float shares on the MSM within three years. Insurers’ promoters will have to divest 40% of shares in the companies to other investors.
The CMA chief also revealed that some local insurers are trying to encourage mergers, which would reduce the number of players in the industry. “This will help to create better and financially strong companies.”
In January, Al Anwar Holding and 13 other minority shareholders of Falcon Insurance Company (FIC) decided to sell their stake in FIC to Arabian Insurance Company and Lawrence Investment. Al Anwar has appointed Denton to advise the sale of 20.35% of its shareholding in FIC for a consideration of OMR1.876 per share.
Although the Sultanate has 22 insurers (11 locally incorporated and 11 branch operations of foreign firms), only four companies – Dhofar Insurance, Oman United Insurance, Al Madina Takaful and Takaful Oman – are listed.