Friday 05 / July / 2024
Muscat: The Capital Market Authority (CMA) has announced the approval of allocation of OQ Gas Networks Shares (OQGN) based on the categories mentioned in the prospectus. The issue was oversubscribed by about 14 times at OMR4 billion, whereas the overall size of the offering is OMR288.2 million. This reflects the confidence of local and foreigner investors in the issuer and the Omani Capital Market in addition to the attractiveness of the national economy in general.
The results of subscription show that the amounts of bids collected from the subscription have multiplied by 6.1 times for the Individuals category and by 28.9 times for the Institutions category. The CMA has considered all the available options to specify the proper mechanism for allocation in accordance with the methodology specified in the prospectus.
The approval of allocation results of the Individuals category is based on a policy observing the interest of all subscribed categories to strike balance and enhance confidence in IPOs. In regards to the methodology of shares allocation for Institutions category, the CMA clarified that shares were allocated based on the standards and mechanisms approved by the issuer in the prospectus.
The allocation percentages are as follows:
1 The CMA approved the allocation results for Individuals category on the basis of allotment of the minimum limit at 3300 shares and allocation of 4.987 percent for each subscriber from the remaining shares. The value of the offering allocated for this category is about OMR80.2 million.
2 Allocation of 4.4773 percent of the total subscribed amounts for Local Institutions proportionality. The value of offering allocated for this category is OMR59.42 million.
3 Approval of the issuer’s proposal on allocation for regional and international institutions category based on what is stipulated in the prospectus. The share of foreign companies in the total offering is OMR59.42 million.
The allocation methodology approved by the CMA ensured that all categories of investors were taken into account. This contributes to broadening participation in public offerings and enhances the role taken by the capital market as one of the effective financing sources in the national economy.
This contributes to achieving the objectives of the National Programme for Financial Sustainability and Financial Sector Development hence achieving the priorities of Oman Vision 2040. The CMA emphasises that huge turnout and confidence in IPOs demonstrates the importance of utilising this market to support the national economy.
It is worth mentioning that the remaining phases will be completed based on the timetable included in the prospectus. The Surplus funds will be refunded on October 17th and the listing of the company in the MSX will be on October 24th.
