Oman Qatar Insurance Company SAOG (under transformation), a leading insurance company in Oman, has announced the opening of its Initial Public Offering (IPO) for subscription.
The company has appointed Ubhar Capital as financial advisor and issue manager for the IPO. The IPO entails offering of 25 million shares at an offer price of 160 baisas per share (comprising a nominal value of 100 baisas per share, premium of 58 baisas per share and offer expenses of 2 baisas per share). The IPO also represents 25 per cent of the total share capital of the company, according to a press release.
It opened for subscription on September 6, 2017 and closes on October 5, 2017. The IPO is available for both Omani and non-Omani investors, and to individual and institutional investors. As many as 65 per cent of the shares available for subscription have been reserved for investors applying for a minimum of 1,000 shares and a maximum of 100,000 shares, with the balance 35 per cent reserved for investors applying for a minimum of 100,100 shares up to a maximum of 2,500,000 shares.
“This is a very proud moment for OQIC. The opening of our IPO not only underlines our compliance with the Royal Decree and Omani insurance regulations, but also offers an attractive investment opportunity to investors in Oman and elsewhere. In the recent years, the company has made positive strides to become one of the leading participants in the insurance sector in Oman.
“The IPO is unique thanks to the backing of OQIC’s parent, Qatar Insurance Company, a global player that is largest insurance and reinsurance group in the Middle East region. OQIC’s IPO will encompass the company’s core values of security, stability and strength,” said Navin Kumar, chief executive officer of OQIC.
Following the IPO, the company expects to generate a five-year average dividend yield of 10 per cent. This compares favourably with the average dividend yield of 8 per cent for the insurance companies currently listed on the Muscat Securities Market. OQIC expects to pay its first dividend following the IPO in April 2018.
The IPO is priced at a discount of 14 per cent (P/B) to national peers.
Established in 2004, OQIC is a subsidiary the of Qatar Insurance Company (QIC) and provides life and general insurance cover in Oman. The company operates through five retail branches and digital channels and has more than 30 sales points through agency and brokers.
OQIC believes in delivering innovative retail solutions for home, travel and car insurance to every segment of its customer base. The company provides its services to some of the large public and private sector companies in energy, aviation, construction and engineering, media, logistic sectors in the Sultanate.
The company also serves as a link for providing insurance services across the Gulf Cooperation Council and helps connect overseas insurance interests through its global network.