Within the endeavors  of digitalization of the  services and procedures regulating the Omani capital market to ensure easing and accelerating the transactions between the Financial Services Authority  and the executive entities,  the FSA announces  launching  the first phase of the electronic system for issuing securities (eIPO), which is the stage of submitting applications and approving issues as the  system is an integrated digital platform designed to regulate issuance and listing procedures in the Omani capital market which would provide electronic environment that contributes to accelerating operations and enhancing market efficiency. The system was designed in cooperation between the National Program for Financial Sustainability and Financial Sector Development “Estidama” and  Muscat Clearing and Depository Company (MCD.

 

The electronic system for issuing securities would contribute to reducing the time and effort required to complete issuance procedures and ensures a smooth flow of information between all parties concerned, which enhances transparency in financial transactions. The system also provides an advanced regulatory environment that facilitates the coordination process between the relevant parties such as the issuer,  Muscat Stock Exchange (MSX), MCD, the issue manager and the legal advisor. This contributes to enhancing institutional cooperation and raising the level of readiness to offer securities in a more efficient and reliable manner. Moreover, the introduction of this system supports achieving the goals of the capital market’s incentives program

 

The first phase, the current, of the electronic issuance system includes three basic procedures, starting with the procedures for submitting issuance applications, which include collecting and analyzing financial and legal data related to the security and ensuring their compliance with the applicable regulations. This stage also includes issuing initial approvals and providing the necessary directions to complete the issuance procedures, hence, the electronic system is a step forward in the process of issuing securities as it contributes to accelerating approval processes and facilitate the regulatory procedures through digital transformation, which would reduce paper transactions and reduce administrative complexities facing the issuers. This development also reflects positively on the financial market.

 

The system is scheduled to include two stages in addition to the stage of submitting applications and approving the issues, which will be announced later, which is the book building stage that  aims to determine the price band for the securities in coordination with the issue managers and investors, according to  the initial subscription mechanisms  to ensure fair pricing in line with market standards  followed by the listing stage on the MSX, where all regulatory procedures  will be completed and the securities will be available for trading, which contributes to enhancing their liquidity and augmenting the attractiveness of investment in the Omani capital market.

 

It is worth noting that the FSA continues its efforts to facilitate all services provided to individuals and institutions as the percentage of digital transformation in the services provided by the FSA reached more than 93% in the year 2024, and that the FSA was able during the past year to achieve new advancement in the digital transformation competence index, as it achieved 84% compared to 76% in 2023.