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21 September 2016
Muscat: Mining Development Oman plans to float an Initial Public Offering (IPO) on the Muscat Securities Market before the end of the year, a top-level official at the Capital Market Authority, told the Times of Oman.
The newly formed company, which was promoted by four state-owned investment arms of the Oman government--the State General Reserve Fund (SGRF), Oman Investment Fund (OIF), Oman Oil Company and Oman National Investments Development Company (Tanmia)--had said in March that the promoters will bring in OMR60 million and the remaining OMR40 million will be raised from the investing public through an IPO.
Sheikh Abdullah Salem Al Salmi, executive president of the Capital Market Authority, told the Times of Oman that the issue size could be even more since the promoters may raise OMR60 million from the public and bring in OMR40 million as promoters' equity. The promoters of Mining Development Oman are yet to take a decision on the size of the public issue.
"Initially, the company intended to come to the market in July. But due to certain issues, there was a delay. We hope to see Mining Development Oman coming to the market, hopefully before the end of the year," Al Salmi said.
Elaborating on the strategy of the new mining firm, Al Salmi said Mining Development Oman will be a holding company, which will create subsidiary firms for developing different types of metal ores/minerals, such as copper, limestone and gypsum. These subsidiary firms will have partners, who have expertise in developing different types of minerals.
Mining Development Oman will carry out both downstream (such as mining) and upstream activities, which include an exploration and extraction process. The company also plans to collaborate with the Omani private sector, whether as a partner, contractor, supplier or promoter of projects.
The formation of a major firm for developing the mining sector is part of a major government strategy since mining is expected to drive non-oil income, which is part of the diversification plan of the government during the ninth five-year plan period. Besides, it complements two other important sectors--the logistics sector and downstream industries. Oman also has facilities at the Sohar and Salalah ports that would enable companies to export minerals.
Meanwhile, Kunooz Oman Holding, a leading player in mining, quarrying, transportation and construction materials sectors in the country, also plans to float an IPO during the first half of 2017.
The company had said earlier this month that it has obtained an initial approval to offer at least a 25 per cent stake in Kunooz Oman to the investing public through a share offer on the Muscat Securities Market.
Oman Investment Fund, a sovereign wealth fund, recently acquired 20 per cent of shares in Kunooz, which has a paid up capital of OMR16 million.
A successful IPO can improve Kunooz Oman's access to capital, offer new mining opportunities both in Oman and internationally, which is also in line with Oman's strategy to reduce its dependence on hydrocarbon resources.
Kunooz Oman is one of the largest mining companies in Oman and comprises of Al Rawas Mining, Mihwar Al Wifaq, Al Rawas Marble and Granite, Salalah Readymix and Al Rawas Transport. Two associate companies of the group are Majan Mining and Carmeuse Majan.
Muscat: Mining Development Oman plans to float an Initial Public Offering (IPO) on the Muscat Securities Market before the end of the year, a top-level official at the Capital Market Authority, told the Times of Oman.
The newly formed company, which was promoted by four state-owned investment arms of the Oman government--the State General Reserve Fund (SGRF), Oman Investment Fund (OIF), Oman Oil Company and Oman National Investments Development Company (Tanmia)--had said in March that the promoters will bring in OMR60 million and the remaining OMR40 million will be raised from the investing public through an IPO.
Sheikh Abdullah Salem Al Salmi, executive president of the Capital Market Authority, told the Times of Oman that the issue size could be even more since the promoters may raise OMR60 million from the public and bring in OMR40 million as promoters' equity. The promoters of Mining Development Oman are yet to take a decision on the size of the public issue.
"Initially, the company intended to come to the market in July. But due to certain issues, there was a delay. We hope to see Mining Development Oman coming to the market, hopefully before the end of the year," Al Salmi said.
Elaborating on the strategy of the new mining firm, Al Salmi said Mining Development Oman will be a holding company, which will create subsidiary firms for developing different types of metal ores/minerals, such as copper, limestone and gypsum. These subsidiary firms will have partners, who have expertise in developing different types of minerals.
Mining Development Oman will carry out both downstream (such as mining) and upstream activities, which include an exploration and extraction process. The company also plans to collaborate with the Omani private sector, whether as a partner, contractor, supplier or promoter of projects.
The formation of a major firm for developing the mining sector is part of a major government strategy since mining is expected to drive non-oil income, which is part of the diversification plan of the government during the ninth five-year plan period. Besides, it complements two other important sectors--the logistics sector and downstream industries. Oman also has facilities at the Sohar and Salalah ports that would enable companies to export minerals.
Meanwhile, Kunooz Oman Holding, a leading player in mining, quarrying, transportation and construction materials sectors in the country, also plans to float an IPO during the first half of 2017.
The company had said earlier this month that it has obtained an initial approval to offer at least a 25 per cent stake in Kunooz Oman to the investing public through a share offer on the Muscat Securities Market.
Oman Investment Fund, a sovereign wealth fund, recently acquired 20 per cent of shares in Kunooz, which has a paid up capital of OMR16 million.
A successful IPO can improve Kunooz Oman's access to capital, offer new mining opportunities both in Oman and internationally, which is also in line with Oman's strategy to reduce its dependence on hydrocarbon resources.
Kunooz Oman is one of the largest mining companies in Oman and comprises of Al Rawas Mining, Mihwar Al Wifaq, Al Rawas Marble and Granite, Salalah Readymix and Al Rawas Transport. Two associate companies of the group are Majan Mining and Carmeuse Majan.
© Times of Oman 2016
