02 January 2012
MUSCAT: Oman Orix Leasing is planning to raise RO5 million by way of a rights issue, to meet the minimum capital requirement and augment the long-term resources of the company.
The company's board has decided to issue 50 million shares to the existing shareholders at a price of 102 baisas per share, which is subject to regulatory approvals.
"The purpose of the issue is to raise the capital base to meet the regulatory requirement of RO20 million by June, 2012 and RO21 million by end-2012. Currently, our paid up capital is RO16.75 million," Hira Lal Bharvani, Chief Executive Officer of Oman Orix Leasing told Times of Oman.
The Central Bank of Oman (CBO) recently asked leasing and hire purchase firms to raise their minimum capital in a phased manner - one million rials each every year starting from 2012, to take the capital base to RO25 million by 2016.
Companies with large capital can withstand any market volatility and achieve better growth. Bharvani said his company's asset has been showing a marked growth. "We are hopeful that this year will be a good year.
Several projects have been awarded recently and there is a good demand for credit from small and medium enterprises," he noted.
Several infrastructure related projects have been announced recently by the government, which are providing substantial work to the small and medium-sized companies.
This, in turn, provides an opportunity to non-banking finance companies for equipment financing. He said the issue may be floated sometime in April-may of 2012.
"Now, we have to apply for regulatory approvals." He said his company has enough reserves, which can be converted into equity by issuing bonus shares. "However, we felt that the company requires additional capital injection through a rights issue."
Saying that the asset growth of leasing industry was fairly good, Bharvani noted that the momentum will continue this year as well. "All leasing companies will take advantage of the demand."
Almost all non-banking finance companies, including Al Omaniya Financial Services and National Finance, are in the process of raising capital base by way of convertible bonds or rights offers.
While Al Omaniya said it is raising RO10 million compulsorily convertible bonds, National Finance is planning to float a RO7.5 million-rights issue. Currently, six hire purchase and leasing firms with a branch network of 33, are operating in the country. Total credit of these companies stood at RO534.2 million by the end of 2010.
MUSCAT: Oman Orix Leasing is planning to raise RO5 million by way of a rights issue, to meet the minimum capital requirement and augment the long-term resources of the company.
The company's board has decided to issue 50 million shares to the existing shareholders at a price of 102 baisas per share, which is subject to regulatory approvals.
"The purpose of the issue is to raise the capital base to meet the regulatory requirement of RO20 million by June, 2012 and RO21 million by end-2012. Currently, our paid up capital is RO16.75 million," Hira Lal Bharvani, Chief Executive Officer of Oman Orix Leasing told Times of Oman.
The Central Bank of Oman (CBO) recently asked leasing and hire purchase firms to raise their minimum capital in a phased manner - one million rials each every year starting from 2012, to take the capital base to RO25 million by 2016.
Companies with large capital can withstand any market volatility and achieve better growth. Bharvani said his company's asset has been showing a marked growth. "We are hopeful that this year will be a good year.
Several projects have been awarded recently and there is a good demand for credit from small and medium enterprises," he noted.
Several infrastructure related projects have been announced recently by the government, which are providing substantial work to the small and medium-sized companies.
This, in turn, provides an opportunity to non-banking finance companies for equipment financing. He said the issue may be floated sometime in April-may of 2012.
"Now, we have to apply for regulatory approvals." He said his company has enough reserves, which can be converted into equity by issuing bonus shares. "However, we felt that the company requires additional capital injection through a rights issue."
Saying that the asset growth of leasing industry was fairly good, Bharvani noted that the momentum will continue this year as well. "All leasing companies will take advantage of the demand."
Almost all non-banking finance companies, including Al Omaniya Financial Services and National Finance, are in the process of raising capital base by way of convertible bonds or rights offers.
While Al Omaniya said it is raising RO10 million compulsorily convertible bonds, National Finance is planning to float a RO7.5 million-rights issue. Currently, six hire purchase and leasing firms with a branch network of 33, are operating in the country. Total credit of these companies stood at RO534.2 million by the end of 2010.
© Times of Oman 2012
