MUSCAT -- Shares of Oman Posts Company (OPC) will be listed on the third market of Muscat Securities Market (MSM) today. The move is in line with a larger plan to partially divest government stake in the company at a later stage. OPC, a wholly-owned government company formed after transferring the assets and liabilities of posts and telegraph department, was formed through a Royal Decree. The company has a paid up capital of RO 3.5 million, with an authorised capital of RO 6.5 million.
"This (listing of shares) is the first step for divesting government stake in the company. We have several other government-owned firms listed on the third market," said a senior official of the MSM. Ahmed bin Abdulnabi Macki, Minister of National Economy, earlier said the government would consider partial divestment of its stake in OPC after few years of operation if the company performs well. The government does not want to pass on the risk to the people at this moment.
Omani law stipulates that all closely held companies have to be listed on MSM's third market and must be registered with the Muscat Depository and Securities Registration Company, but there would not be any normal share trading. On the basis of financial strength and liquidity of listed companies, MSM is divided into three segments -- regular, parallel and third.
Oman Posts is expected to offer innovative services in line with the trend in advanced countries as the role of posts and telegraph company is not confined to sending and receiving letters or small parcels. The government has planned privatisation or disinvestment programme in various sectors on a step-by-step basis in line with the absorbing capacity of the investing community.
The country has achieved tremendous progress in privatising power and telecommunication sectors. Last year, the government has raised RO 288 million from local investors, by divesting its 30 per cent stake in Oman Telecommunications Com-pany (Omantel), which was the largest initial public offering in the country.
As many as 225 million shares were offered to Omani investors, pension funds and charitable institutions. Also, three independent power projects have partially offered their stakes to the public. In a way, the benefits of privatisation have been passed on to the general public by offering shares of these utility companies.
By A E James
© Oman Daily Observer 2006
