CMA Approves Allocation of Abraj Energy Shares Taking into Consideration Small Investors

Minimum Limit Specified at 4,500 Shares and 0.1121% for small investors and 4.62% for First Category

The Capital Market Authority has announced allocation of Abraj Energy shares in accordance with a policy observing the interests of the second category of investors represented by small investors with an allocation ratio at 35% of the total offer.

HE Sheikh Abdullah Salim Al Salmi, Executive President of the Capital Market Authority said the amount collected from the subscription process exceeded eight folds of the offered shares for the second category at RO 246 million while the amount of shares offered for small investors was  RO 29.6 million which represents 35% of the total offering.

 HE added that the CMA considered the status related to allocation of shares taking into consideration covering  the largest number of subscribers and to reduce the refunded amounts as possible to provide investment opportunities  in the Muscat Stock Exchange for new segment of investors to expand the participation base in the capital market and trading in securities by increasing the number of investors in the market.

HE pointed out that the results of allocation of the shares of Abraj Energy was approved based on distributing the minimum limit to the small shareholders category at 4,500 shares and distributing  0.1121%  of the remaining shares for each subscriber, and allocation of 4.62% proportionately to each subscriber in the first category represented by institutional investors. HE said the allocation results would guarantee that the number of investors who will get 100% of the subscribed amounts is 19,6000 subscribers at 49% of the total  subscribers of the retail investors whose number is 39 thousand subscribers.

Al Salmi added that such results  have constructive indications on the volume of confidence and desire of investors to avail the advantages of investment in the stock market. We emphasize again that the desire and confidence must be utilized in the stimulation of the  national economy and invested in large productive projects that  would provide employment opportunities for a large segment of the  youth beside the other economic and social benefits