14 May 2012
Muscat: At least two leading Omani banks -" National Bank of Oman (NBO) and Oman Arab Bank (OAB) -" are offering credit facility for investors applying for the Bank Nizwa's RO60 million-initial public offering.
The loan facility, which is in a ratio of 1:1, is expected to boost the overall subscription of the share offer.
The IPO, which is available for both Omanis and expatriates, is open for subscription between April 23 and May 22.
OAB is offering loan for those who apply for a minimum of 50,000 shares and the service charge is fixed at RO15.
Likewise, NBO's IPO loan is available for those who apply for a minimum 20,000 shares.
The bank levies a fixed service charge of RO15, while the interest rate is fixed at 6 per cent per annum.
However, unlike the previous IPOs, BankMuscat, ahlibank and Bank Sohar are not providing loan to subscribe to Oman's first Islamic bank's primary issue.
Strong appetite
Meanwhile, market sources said there is a good amount of interest for the primary offer, from both within the country and outside. "There has been a rush for taking new investor folio numbers (investor account) from the Muscat Clearing and Depository Company, which itself is an indication on the strong interest,- said a market source.
"There is a good appetite for this issue,- added the source, who does not want to be names. Institutions are looking for a long term investment, while retail investors are eyeing a short-term listing gain.
Sources also said that the promoters, who could not get enough quotas, will also apply through the IPO route to enhance their stake holding in the bank.
Market analysts privately admit that the IPO may oversubscribe to the tune of seven to eight times and listing gain could be in the region of 20-25 baisas per share.
A major portion of subscription will come towards the end of the current week or early next week.
The bank is offering 600 million shares, which will have a par value of 102 baisas each, including two baisas for meeting issue expenses.
As much as 60 per cent of the share offer is reserved for those investors who apply for 100,000 shares or less. And the remaining 40 per cent are reserved for institutional investors or high net worth individuals who apply for more than 100,000 shares.
This is aimed at strengthening the participation of retail investors. The shares are expected to be listed on the Muscat Securities Market (after allotment) on June 12.
Bank Nizwa, with an authorised capital of RO300 million, has a paid up capital of RO150 million. The bank's 40 per cent paid up capital (or RO60 million) will be offered to the investing public and the remaining RO90 million is brought in by 92 founding members. The issue is managed by Oman Arab Bank (OAB).
Bank Nizwa founding committee members earlier said that the bank would commence operations by end-July, with three branches -" one each in Muscat, Nizwa and Sohar. Over the past months, the bank has been working with its consultants and advisors on implementing the drawn up plans.
Muscat: At least two leading Omani banks -" National Bank of Oman (NBO) and Oman Arab Bank (OAB) -" are offering credit facility for investors applying for the Bank Nizwa's RO60 million-initial public offering.
The loan facility, which is in a ratio of 1:1, is expected to boost the overall subscription of the share offer.
The IPO, which is available for both Omanis and expatriates, is open for subscription between April 23 and May 22.
OAB is offering loan for those who apply for a minimum of 50,000 shares and the service charge is fixed at RO15.
Likewise, NBO's IPO loan is available for those who apply for a minimum 20,000 shares.
The bank levies a fixed service charge of RO15, while the interest rate is fixed at 6 per cent per annum.
However, unlike the previous IPOs, BankMuscat, ahlibank and Bank Sohar are not providing loan to subscribe to Oman's first Islamic bank's primary issue.
Strong appetite
Meanwhile, market sources said there is a good amount of interest for the primary offer, from both within the country and outside. "There has been a rush for taking new investor folio numbers (investor account) from the Muscat Clearing and Depository Company, which itself is an indication on the strong interest,- said a market source.
"There is a good appetite for this issue,- added the source, who does not want to be names. Institutions are looking for a long term investment, while retail investors are eyeing a short-term listing gain.
Sources also said that the promoters, who could not get enough quotas, will also apply through the IPO route to enhance their stake holding in the bank.
Market analysts privately admit that the IPO may oversubscribe to the tune of seven to eight times and listing gain could be in the region of 20-25 baisas per share.
A major portion of subscription will come towards the end of the current week or early next week.
The bank is offering 600 million shares, which will have a par value of 102 baisas each, including two baisas for meeting issue expenses.
As much as 60 per cent of the share offer is reserved for those investors who apply for 100,000 shares or less. And the remaining 40 per cent are reserved for institutional investors or high net worth individuals who apply for more than 100,000 shares.
This is aimed at strengthening the participation of retail investors. The shares are expected to be listed on the Muscat Securities Market (after allotment) on June 12.
Bank Nizwa, with an authorised capital of RO300 million, has a paid up capital of RO150 million. The bank's 40 per cent paid up capital (or RO60 million) will be offered to the investing public and the remaining RO90 million is brought in by 92 founding members. The issue is managed by Oman Arab Bank (OAB).
Bank Nizwa founding committee members earlier said that the bank would commence operations by end-July, with three branches -" one each in Muscat, Nizwa and Sohar. Over the past months, the bank has been working with its consultants and advisors on implementing the drawn up plans.
© Times of Oman 2012
