Apr 17 2012 |
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Analysts expect Bank Nizwa IPO to be oversubscribed
Market analysts expect Bank Nizwa 's initial public offering (IPO), which will be open for public subscription on April 23, to receive an overwhelming response from both retail and institutional investors and be oversubscribed. The offering, which is open to both Omani and non-Omani investors, will close on May 22, 2012.Bank Nizwa will float 600mn shares to raise RO60mn - or 40 per cent - of its share capital. The offer price is 102bz per share, comprising a nominal value of 100bz per share and issue expense of 2bz. As much as 60 per cent of shares are reserved for individual investors and 40 per cent for institutions.
According to analysts, the subscription period is expected to drive selling pressure in the market, as investors may pull out money to invest in the IPO and other rights issues.
He said, "Given the interest, we expect the IPO to be oversubscribed. There are investors who have never invested in conventional banks due to religious beliefs who will now participate in the IPO."
"The issue is quite large, and being the first Islamic bank in the country Bank Nizwa will have an early mover's advantage."
© Muscat Daily 2012
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