The CMA Conducts a Panel Discussion on the Assessment of the Requirements of Public Offerings, as a Preparation for the Upcoming IPO

Al Mamari: the CMA pays great attention to full transparency in managing issuances through proper pricing and ensuring fair opportunities for all investors.

As part of the Capital Market Authority’s (CMA) efforts to review the policies and requirements of public offerings in the securities market and encourage institutions of the private sector to convert into public stock companies, the CMA conducted a panel discussion on public offerings and addressing the regulations and requirements of this process, as a preparation for the upcoming IPO; with participation of representatives of Oman Investment Authority, Muscat Stock Exchange (MSX) , Muscat Clearing and Depository, OQ, Omani Securities Association and other related entities.

Ahmed bin Ali bin Saif Al Mamari- CMA’s Executive Vice President initiated the Panel Discussion’s agenda with the opening speech saying that this panel is based on the community partnership adopted by the CMA when reviewing and assessing the legislative and regulatory frameworks of the financial services market in the Sultanate of Oman.  He also pointed out that this meeting aims at reviewing and assessing the procedures for conversion into public companies and streamlining such procedures in order to achieve the aspirations of companies and MSX traders, as a preparation for the upcoming IPO and with participation of institutions directly related to the upcoming IPO.  Such participation will assist in achieving convergence of views that ensure the success of the upcoming IPO as well as enhancing the MSX performance.  Al Mamari also stressed that new IPOs always contribute to providing new investment opportunities for local and international investors and clears the way for new investors to join the market.  This eventually boosts the ratios of free shares in the market and increases trading activity.  The discussion will focus on several topics like assessing listing requirements, pricing mechanisms, allocation policies and other topics related to technical and legislative aspects.

In addition, the Executive Vice President also pointed out that this panel discussion aligns with the Government’s interest to benefiting from the potentials of the capital market in regards to financing major production projects led by the private sector and are counted on to achieve one of main priorities of Oman Vision 2040 aiming at diversification of the Omani economy, enhancing the Sultanate’s financial resources and activating the role of the private sector in the national economy.  He also said that Government has adopted a national policy aiming at privatizing a part of Government-owned companies' ownership to accomplish financial and economic objectives that serve the public interest.  The Oman Investment Authority supervises the implementation of such policy after it announced its intention to exit 35 owned companies and its affiliates within five years.

During its opening speech, Al Mamari emphasized that the CMA and its legislative policies pay great attention to full transparency in all public offerings and listing processes through suitable pricing of securities and ensuring fair opportunities for all investors including individuals and small investors. This is due to the fact that the objectives of the national policy related to privatization of public companies through public offering is not limited to achieving financial returns to the country and attracting foreign investments but also attracting savings to individuals through providing them with proper investment opportunities and enhancing their investments in the MSX.

It is worth mentioning that the panel has received positive interaction by participants through looking through previous experiences.  The panel also contributed to presenting latest updates of the global markets on the management of issuances especially with the role played by technology breakthroughs.  Additionally, efforts of assessing ad reviewing listing requirements is one of the CMA’s targets that aims at enhancing the performance of the capital market and the CMA’s competency, in line with the CMA’S strategic plan (2021-2025).