Approval of allocating a minimum of 30,000 shares + 29.269% for individual small investors, 72.817% of the subscribed shares for large investors

The Financial Services Authority announced the approval of the allocation ratios for the shares of OQ Base Industries (OQBI) according to the categories mentioned in the prospectus. The offering witnessed a total coverage amounting to RO 387 million. This reflects the confidence of local and foreign investors in the issuer company and the Omani capital market in addition to the attractiveness of the national economy in general.

The subscription results show that the volume of amounts collected from the subscription process exceeded the value offered for the second category of large individual investors, as the total amounts collected amounted to approximately RO 51 million and the offered shares were covered by 1.37 times, while the volume of amounts collected for the second category of small investors amounted to approximately RO 43 million with a coverage amounting to 1.15 times.

As for the first category (institutions) the volume of amounts collected exceeded RO 235 million at 4.2 times coverage of the offered shares. Based on this data, the FSA considered all available options to determine the appropriate allocation mechanism in accordance with the method specified in the prospectus and in a way that achieves benefits for the largest number of subscribers after reviewing all the data.

The results of allocation for the second category of individuals were approved according to a policy that takes into account all subscribing categories as much as possible in a way that achieves the desired coherence and balance and enhances confidence in the initial issuance market.  Regarding the method for allocation for the institutional category, FSA said that it allocated in accordance with the mechanisms and standards adopted by the issuer company in accordance with stipulations of the prospectus.  Allocation percentages were as follows:

• First category: local institutions: 19.95% of the subscribed shares.
• The second category (individuals), large investors: 72.817% of the subscribed shares.
• The second category (individuals) small investors: a minimum distribution at 30,000 shares and distribution of 29.269% of the remaining shares to each subscriber.

FSA adopted an allocation method that takes into account all segments of investors in a way that contributes to expanding the base of participation in the public offerings and enhancing the role of the capital market sector as one of the effective sources of financing in the national economy.

This will contribute to achieving the objects and priorities of Oman Vision 2040. The FSA emphasizes that the remarkable turnout and confidence in IPOs market   demonstrates the importance of benefiting from this market in supporting the activities of the national economy and employing in financing various investment projects.

It is worth noting that the remaining stages will be completed according to the timetable specified in the prospectus.  The surplus funds for the second category will be refunded during the period 8-9 December and the company’s listing on the Muscat Stock Exchange will take place on December 12; which is the date indicated in the prospectus.