Demand more than RO 122 Million
CMA Approves Allocation of Muscat City Desalination Company Shares at 1000 shares plus 3.1% of the balance for First Category and 4.14% for Second Category
Al Abri
The Capital Market Authority has announce it approved the allocation ratio of the shares of Muscat City Desalination Company taking into consideration the biggest segment of retail investors.
Mohammed Said Al Abri, Vice President for Capital Market Sector at CMA said the volume of subscription for the shares of the offering was 19 folds the offered shares and thus CMA considered the situation to give opportunity to small investors to invest in MSM to infuse new blood in the market and to avoid concentration of holdings which mars most markets in the region which would widen the base of participation in the capital markets and trading in shares.
Al Abri pointed out that allocation of the shares of Muscat City Desalination Company is based on a minimum of 1,000 shares for each of the small investors plus 3.1% and allocation of 4.14% for institutional investors.
Al Abri said the huge turnout was evidence of the desire of investors to avail the opportunities and to take part in the holdings of big productive companies which is the role of the securities markets.
The results of the subscription in the offering was more than RO 122 Million while the amount offered shares was only RO 6.5 million.
He added such results are positive indicator of the confidence in investment in the securities market and indicator of existence of liquidity which should be availed in stimulating the national economy by investing in huge productive projects which would provide job opportunities for large number of youth beside the economic and social benefits.
Al Abri concluded that CMA encourages all investors to focus on long term investment to achieve larger benefits especially when the issuer is employing huge funds in investment activities which have impact on the national economy and realize feasible returns.
Muscat City Desalination Company has offered 35% of the founders’ shares at RO 6.5 million in public offering during the period 19 November - 18 December 2017 at 116 Baisas per share.