Apr 23 2012 |
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Bank Nizwa IPO opens today
By Samuel Kutty MUSCAT -- Bank Nizwa, the Sultanate's first Islamic bank, is all set to launch its much-awaited initial public offering (IPO) on the Muscat Securities Market today. The issue, which is open to both Omani and non-Omani investors, will close on May 22. The bank is offering 600 million shares to raise RO 60 million at 102 baisa per share, which includes issue expense of 2 baisa. As much as 60 per cent of shares are reserved for individual investors and 40 per cent for institutions.Analysts are of the opinion that there will be a huge pent-up demand for the IPO as the MSM spread has been positive and the breadth tilting towards gainers since the beginning of the first quarter. Also they expect the IPO to be oversubscribed. "Now with the buying interest seen across the counters amid improved overall trading activity, the bourse is witnessing the much needed confidence among its participants," says Joice Mathew, Senior Manager at United Securities.
The liquidity in the local bourse is more than enough for its deep connection with institutional and retail investors, he adds. "The subscription period is likely to witness selling pressure in the market, as investors may pull out money to invest in the new IPO", says Kanag Sundar, Senior Manager, Gulf Baader Capital Market.
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