Subscription Commences on September 26^th  for Individuals and Institutions

Subscription Price 126 Baisas for individuals and Book Building for institutions in the range of 131-140 Baisas

The Capital Market Authority Announces the approval of the prospectus of OQ (SAOC) under conversion to public joint stock company through  offering  not less than  2 billion shares comprising 49% of its share capital by way of public offering. The offer is considered the largest in the history of the Omani capital market in terms of  volume and market value of the company with its capital of RO 433 million comprising  more than 4 billion shares.

OQ is a company owned by Oman Investment Authority.

The offering comes as part of the national programs for financial sustainability and development of the financial sector to achieve the objects of Oman Vision 2040 for the development of the private sector and the national economy, which makes the capital market a sustainable engine for development programs and wealth creation in the Sultanate of Oman. As such, the offering is the second phase of divestment  plan of the Oman Investment Authority  in accordance with the directives of HM Sultan Haitham Bin Tariq may Allah protect him.

The prospectus points out that the subscription period will be two weeks commencing on  26 September for the first and second categories and continue until October 9, 2023 for the first category while the subscription will close for the second  category,  which is represented by individuals, on October 5, 2023. The prospectus shows that the number of offered shares is divided into three main categories namely the institutions (first category), individuals (second category) and major investors’ category.  The prospectus shows that the price band for the first category will be determined through book building prcess within a price band ranging from 131  to 140 Baisas. The share price for individuals will be 126 Baisas on the basis of the highest price less  10% to encourage the individuals to participate in such offerings to avail  the investment opportunities.

The prospectus indicates that the share of the first category  represented by institutions is 40% of the offering  divided equally between local institutions  and regional and international institutions.  The minimum limit of subscription for this category will be 100,000 shares without specifying a maximum limit. As for individuals who are the second category they will be allotted 30% of the offering with  a minimum of 1,000 shares  without specifying  a maximum limit.

30% of the offering will be allocated for major investors who represent the eligible investors from inside and outside the Sultanate of Oman.

CMA emphasizes that the prospectus is the main reference  about the information  and statement related to OQ and was prepared by the issue manager as per the legal requirements to assist the investors to take an informed investment decision away from the rumors and news from anonymous  sources. Hence, careful reading of the prospectus is required to have an insight on the performance of the company and its historical financial position. The prospectus also shows the opportunities available for the company and the sector in which it operates as well as the challenges it encounters including the future risks. The prospectus also show the contracts of the company and their terms as well as the likelihoods of distribution of dividends on the short term and the company’s approach in dividends distribution.

CMA calls on the public, individuals and institutions, to follow up the promotional activity of the issuer of the security  i.e. OQ and the issue manager to find out the details of the prospectus and the key information required to take an informed investment decision