March 22, 2014
Muscat: Further to the successful conclusion of the private placement of 71.25 million Omantel shares to Omani individuals and institutions this week, the Government of Sultanate of Oman, represented by the Ministry of Finance, announced that a public offer of Omantel shares to Omani individuals will open on 31 March 2014. The move represents the second phase of Omantel Divestment planned by the government.
Saud Nasser Al Shukaily, Chairman of the Supervisory Committee for Omantel Divestment at the Ministry, expressed his satisfaction at the strong response received from the Omani individuals and institutions to the first phase of the Omantel Divestment which was the private placement of 71.25 million Omantel shares. 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 attracted bids from investors in the price range of OMR1.500 to OMR1.900 per share. As per the methodology laid down in the private placement memorandum, the Capital Market Authority (CMA) approved the cut-off price of OMR1.511 per share.
As announced previously, the public offer is directed towards Omani individuals. The offer is at a fixed price of OMR1.350 per share inclusive of issue expenses, and public offer will open on 31 March 2014 and close after two weeks on April 13, 2014.
During the last 12 months, Omantel shares have traded very actively on the Muscat Securities Market (MSM), and the highest price reached was OMR1.720 per share, while the lowest was OMR1.380 per share.
The public offer price of OMR1.350 per share is attractively set to address several objectives set out by the government and is at a discount of around 13 per cent or OMR190 baizas to the last traded price of OMR1.540 on 19 March 2014.
With the intention of 'Sharing Opportunities & Spreading Ownership,' the Ministry of Finance had proposed to divest part of the government's shareholding in Omantel.
© Times of Oman 2014
