MUSCAT -- As part of the divestment plans of Omantel, the company launched its second phase of public offer to Omani individuals at the Ministry of Finance here yesterday. Addressing a press conference, Saud bin Nasser al Shukaili, Secretary-General of Taxation at the ministry, Head of the Supervisory Committee for the sale of government share in Omantel, said the government's sale of its stake in Omantel aims to broaden the ownership of Omani investors, individuals and institutions in the company and enhance their participation in privatisation programmes being implemented by the government. He said that the objectives of the sale represent in enhancing the contribution of domestic investment in the national economy, enriching trading, activating securities market and promoting the culture of savings and investment among citizens.
He added that the total quota available for sale (both public and private subscription) amounted to 27 per cent of the government's share in the capital of Omantel, which is equivalent to 19 per cent of the capital that is 142,500,000 shares. He added that the quota was equally distributed for sale in public offering for small investors (individuals only) whose subscription applications do not exceed 10,000 shares and a private placement for investors (whether individuals or entities) whose subscription applications do not exceed 2 million shares. Al Shukaili added that the first stage, which ends in March 2014, amounted to 71,250,000 shares allocated by auction to investors, adding that the sale price was RO 1.511. Shareholders will be receiving an 8.5 per cent dividend yield and 115 per cent annual dividends and according to him, this gives boost to their confidence that the offer will be oversubscribed.
"We are pretty confident that this public offer will be oversubscribed following its predecessor and it is a highly beneficial investment for the subscriber". The first phase of the Omantel divestment involving private placement received astounding response at the bourse and was oversubscribed almost 200 per cent. The private placement was subscribed 1.99 times as the government received bids for 141.70 million shares as against 71.25 million shares on offer, and it was able to attract bids from investors in the price range of RO 1.500 to RO 1.900 per share. "Most of the details relating to the public offer has already been announced and is in public domain, including the government's objectives on the privatisation process in general, and Omantel divestment in particular," Al Shukaily told the media.
He also said that when offering shares, all legal procedures and requirements were taken into account, including the preparation of the information note. He advised investors to read the note carefully and if an investor is unable to understand the provided information, he/she should consult specialists. He added that there are no restrictions for the sale of shares after the allocation to beneficiaries, whether Omanis or non-Omanis.
© Oman Daily Observer 2014
