13 April 2014
Muscat: The Public Offer of Omantel shares to Omani individuals closes on Sunday. It offers the investors a great opportunity to invest in a strong, stable, and yielding share at a price of OMR1.350 with a dividend yield of 8.51 per cent at this price. It is a good opportunity for Omani investors, who should visit the nearest bank to pick up the application forms and information memorandum to subscribe to the issue for themselves and family members.
The Public Offer price of OMR1.350 per share is currently at a discount of almost 150 baizas or more than 10 per cent to the ex-dividend Omantel share price of OMR1.490/1.500 per share as traded on MSM during last week.
While Omantel distributed annual dividends of 100 per cent for 2009, 2010 and 2011, the dividends were increased to 115 per cent for 2012 and 2013. At the annualised dividend rate of 115 per cent on the Public Offer price, the Omani investor will effectively get a dividend yield of 8.51 per cent, which is the highest among all the shares included in the MSM 30 Index. Omantel AGM has already approved an interim dividend of up to 40 per cent which will be paid in a few months time in August 2014.
Leading brokerages and analysts have also given a thumbs-up to the issue and given a 12-month target price of OMR1.710 to OMR1.780, which would mean a substantial price appreciation in excess of 26 per cent over a nine month period.
To meet the public demand, the Ministry has arranged additional application forms and Information Memorandum at the branches of all the leading banks in Oman to enable Omani investors take maximum advantage of this opportunity.
Commenting earlier on the Public Offer of Omantel shares, Saud Nasser Al Shukaily, who is the Chairman of the Supervisory Committee for Omantel Divestment at the Ministry of Finance, emphasised on the government's intention towards 'Sharing Opportunities & Spreading Ownership' by divesting part of the government's shareholding in Omantel.
The objective of this initiative was to increase ownership of Omantel among Omani institutional and individual investors, to enhance widespread public participation in the privatisation process initiated by the Government, to enhance trading activities and energise the market, to enhance domestic investment in the national economy and to maximise shareholder value and proceeds.
Omantel is the No. 1 telecom service provider in Oman with a growing subscriber base of over three million and 58.5 per cent share of the mobile market in Oman. The latest financials of Omantel indicate that there has been consistent growth in revenues and profitability over the years.
Muscat: The Public Offer of Omantel shares to Omani individuals closes on Sunday. It offers the investors a great opportunity to invest in a strong, stable, and yielding share at a price of OMR1.350 with a dividend yield of 8.51 per cent at this price. It is a good opportunity for Omani investors, who should visit the nearest bank to pick up the application forms and information memorandum to subscribe to the issue for themselves and family members.
The Public Offer price of OMR1.350 per share is currently at a discount of almost 150 baizas or more than 10 per cent to the ex-dividend Omantel share price of OMR1.490/1.500 per share as traded on MSM during last week.
While Omantel distributed annual dividends of 100 per cent for 2009, 2010 and 2011, the dividends were increased to 115 per cent for 2012 and 2013. At the annualised dividend rate of 115 per cent on the Public Offer price, the Omani investor will effectively get a dividend yield of 8.51 per cent, which is the highest among all the shares included in the MSM 30 Index. Omantel AGM has already approved an interim dividend of up to 40 per cent which will be paid in a few months time in August 2014.
Leading brokerages and analysts have also given a thumbs-up to the issue and given a 12-month target price of OMR1.710 to OMR1.780, which would mean a substantial price appreciation in excess of 26 per cent over a nine month period.
To meet the public demand, the Ministry has arranged additional application forms and Information Memorandum at the branches of all the leading banks in Oman to enable Omani investors take maximum advantage of this opportunity.
Commenting earlier on the Public Offer of Omantel shares, Saud Nasser Al Shukaily, who is the Chairman of the Supervisory Committee for Omantel Divestment at the Ministry of Finance, emphasised on the government's intention towards 'Sharing Opportunities & Spreading Ownership' by divesting part of the government's shareholding in Omantel.
The objective of this initiative was to increase ownership of Omantel among Omani institutional and individual investors, to enhance widespread public participation in the privatisation process initiated by the Government, to enhance trading activities and energise the market, to enhance domestic investment in the national economy and to maximise shareholder value and proceeds.
Omantel is the No. 1 telecom service provider in Oman with a growing subscriber base of over three million and 58.5 per cent share of the mobile market in Oman. The latest financials of Omantel indicate that there has been consistent growth in revenues and profitability over the years.
© Times of Oman 2014
