Arabia Falcon Insurance IPO opens for subscription
March 6, 2018 | 5:40 PM
by Times News Service
The company aims to build on the recent merger that has created a synergy between two strong market players in the country. - Supplied picture

Muscat: Arabia Falcon Insurance Co. (AFIC) is banking on the merger between Falcon Insurance Company and Arabia Insurance for the success of their Initial Public Offering (IPO), which opened for subscription on Tuesday.

Part of the region’s oldest insurance group, the company announced the opening of its IPO for public subscription. It will close on April 2, 2018. Through its IPO, Arabia Falcon Insurance is offering 25 million shares at a price of 190 baiza per share, comprising a nominal value of 100 baiza per share, premium of 88 baiza, and offer expenses of 2 baiza per share.

Also, Arabia Falcon Insurance has appointed Ubhar Capital as the financial advisor and issue manager for the IPO, which represents an offer of 25 per cent of the total share capital of the company.

The company aims to build on the recent merger that has created a synergy between two strong market players in the country. The IPO subscription will be open to both Omani and non-Omani investors, and juristic persons who have their accounts with the MCD as on the date and/or during the subscription period.

“Being part of Arabia Insurance and Al Anwar Holdings SAOG, AFIC has adopted global best practices in the sector, enabling the company to build trust and confidence with stakeholders. The launch of our IPO is a very exciting phase for the company, as it opens a new chapter in its rich history in the Sultanate. The IPO offers a unique opportunity for all to be a part of Arabia Falcon’s historical success, and its bright future,” Shabir M A Al Yousef, deputy chairman of AFIC, said.

Commenting on the opening of the IPO, chief executive officer A.R. Srinivasan said, “We have constantly made positive strides to become one of the leading companies in the insurance sector in Oman. The Arabia Falcon Insurance IPO is distinctive, given it represents the combined strength of a well-established Omani institution and the expertise of one of the oldest Arab insurance companies in the business.”

“The opening of our IPO underlines our compliance with the Royal Decree and Omani insurance regulations, and also offers an attractive investment opportunity to investors in Oman and elsewhere,” he added.

The company expects to pay its first dividend in April 2018. Application forms for the IPO are available for collection at all branches of the subscription banks, Bank Sohar, National Bank of Oman, and Oman Arab Bank.

Falcon Insurance Company (FIC) was established in 2005 and has been operating as Arabia Falcon Insurance Co. (AFIC) since March 2017. The company is a subsidiary of Arabia Insurance, the oldest Insurance group in the region, and benefits from Arabia Insurance’s regional and local experience, providing top-notch insurance services to the Omani market.

The company’s second biggest shareholder and promoter is Al Anwar Holdings SAOG and its other promoters include George Chidiac, Lawrence Investments LLC, ONIC SAOC, and Amin Mohammed Al Shareef. Al Anwar Holdings SAOG is one of the leading financial services companies in the Sultanate and has strategic investments in prominent entities such as Al Maha Ceramics, Voltamp, Nabil, National Detergents, Al Ruwad School etc.

AFIC’s Board of Directors comprise well-recognised experts in the field of insurance, and the company’s management is made up of highly qualified professionals with an aggregate experience of over 200 years in local, regional and international insurance markets.

The company provides protection services in general insurance and life insurance, and operates from several branches all over Oman. Having the strong support of a number of well-respected international re-insurers such as Swiss Re, Partner Re and Munich Re, AFIC has been providing quality insurance services to several prominent business groups in Oman.

At present, AFIC plans to open more branch offices, thus expanding its network all over the Sultanate.

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