https://d5nxst8fruw4z.cloudfront.net/atrk.gif?account=pUuXo1IWhd10Ug
logo
Free distribution of shares to TruckOman staff is recognition of loyalty, says chairman
February 22, 2015 | 12:00 AM
Dr Mohamed bin Musa Al Yousef, group chairman of Al Yousef Group and TruckOman Group, said that the grant of three million shares valued at OMR1,050,000 was recognition of the loyalty and dedication of the employees, who are the company’s most valuable asset. Photo - Supplied
 
Sharelines

Muscat: Free distribution of shares to TruckOman employees set an important precedent in the private sector for acknowledging the services of dedicated workers, said a senior official at TruckOman.

In a first-of-its-kind initiative, Al Yousef Group, the main shareholder of TruckOman Oil & Gas Services — a company specialising in logistics services — recently awarded free shares to TruckOman employees.

Established in 1978, TruckOman, which was a simple transport provider, has now developed as the logistics service provider of choice to Oman's oil and gas sector.

The company specialises in three core activities, namely oil and gas logistics, supply chain management and total logistics services, and its activities include rig moving services, freight forwarding, cargo haulage, yard management and warehousing.



Speaking to the 'Times of Oman', Dr Mohamed bin Musa Al Yousef, group chairman of Al Yousef Group and TruckOman Group, said that the grant of three million shares valued at OMR1,050,000 was recognition of the loyalty and dedication of the employees, who are the company's most valuable asset.  

The share ownership scheme, which is aimed at motivating and encouraging the retention of employees, enables workers to become shareholders through a Special Purpose Vehicle (SPV) called 'Mazaya TruckOman', established to own shares on behalf of the employees. 

Dr Al Yousef said that in order to encourage employees to hold their shares for a long period, Mazaya will allocate 10 per cent bonus shares each year for a period of five years to the employees who continue to hold Mazaya shares.

"This is obviously in addition to the profits which they are entitled to annually from the dividends that Mazaya will receive from TruckOman," he said. Furthermore, a clear mechanism has been laid down for those who want to sell their shares, and for this purpose a special booklet outlining the scheme and its modus operandi has been circulated to all employees. 

Dr Al Yousef also added that TruckOman itself may allocate additional shares to Mazaya in future for distribution to existing employees as well as new employees.

The initiative was a 'very important' development in the private sector, said Dr. Al Yousef, while adding that the employees should have the feeling that they are not just employees but they are also shareholders in their own right.

"Maybe, they will even have a member in future on the TruckOman board," he added.

Dr Al Yousef indicated that TrucKOman has an annual turnover of around OMR18 to OMR20 million and employs around 450 workers with an average Omanisation rate of 60 per cent. 

In addition, he said that TruckOman plans to launch an initial public offering (IPO) and has been exempted by His Majesty's Government from the mandatory 40 per cent floatation and will float 25 per cent of the share capital.
The exemption is aimed at encouraging family-owned companies to float a portion of their shares for public subscription to broaden the base of participation and ownership in the national economy.

The documents have been submitted to the Capital Market Authority (CMA) and the launch of the IPO will be announced as soon as these are approved by the authority, said Dr. Al Yousef, adding that the floatation is expected in the first quarter of this year. 

To contact this reporter: [email protected]


STAY UPDATED
Subscribe to our newsletter and be the first to know all the latest news