Apr 03 2012
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OAB plans to raise RO50m in bonds
The shareholders have cleared the proposal at an extra ordinary meeting, the bank said in a statement. The issue price of the bond is fixed at RO1.002, which include two baisas as issue expense.
The EGM also authorised the board of directors and the CEO of the bank to finalise the conditions of the bonds issue, to complete the regulatory requirements, and to sign the prospectus and other related documents. The shareholders approved a proposal to distribute 12 per cent cash dividend and 6 per cent bonus shares. It also approved a proposal to issue preferential shares at the rate of 10 per cent.
Meanwhile, Oman Arab Bank is doing ground work for its primary issue. The two partners of the bank are diluting a 25 per cent stake in the bank, in favour of investing public. The cabinet has already allowed OAB partners to offer 25 per cent stake in favour of investing public.
OAB 's move is considered as a special case, since as per the existing law, a company can not go public unless the promoters dilute 40 per cent through an IPO.
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