Muscat: Al Ahlia Insurance Company SAOG (under transformation), one of Oman’s oldest insurance companies, has announced the opening of its Initial Public Offering (IPO) for subscription.
This is the first IPO on the Muscat Securities Market in the last two years.
The IPO opened for subscription on July 4 this year and will close on August 2. It is open for subscription to Omani and non-Omani investors, including individual and institutional investors. In the IPO, 65 per cent of the offered shares have been reserved for small investors applying a minimum of 1,000 shares to a maximum of 250,000 shares, with the remaining 35 per cent of the shares reserved for large investors applying for a minimum of 250,100 shares up to a maximum of 2,500,000 shares.
Al Ahlia is offering 25,000,000 shares at an offer price of 300 baisas per share (comprising a nominal value of 100 baisas and a premium of 200 baisas). The IPO represents an offer of 25 per cent of the share capital of the company.
The application form for the IPO is available for collection at any branch of the subscription banks, which are Bank Muscat, National Bank of Oman, Oman Arab Bank, Bank Dhofar, Bank Sohar and Ahli Bank.
“This is indeed a unique and exciting opportunity, backed by trust and confidence, for investors in Oman. The Al Ahlia IPO is distinctive, as it represents the combined strength of being a well-established Omani institution and the expertise of a global leader in the insurance business: RSA Insurance Group,” said Lloyd East, regional chief executive officer, RSA (Middle East) and managing director of Al Ahlia.
At the IPO price, the company offers an attractive average projected dividend yield of 9.3 per cent for the first four years. The first dividend of 11 baisas is expected to be paid by the company in August/September 2017, with semi-annual dividend distributions thereafter. Bank Muscat is the financial adviser and issue manager for the transaction.
Al Ahlia is a leading property and casualty insurer in Oman, backed by strong promoters that are led by the RSA Insurance Group and well supported by experienced local shareholders. RSA Insurance Group, the largest ultimate shareholder in Al Ahlia, has a legacy of over 300 years and is one of the world’s leading multinational insurance groups employing over 13,000 people, serving over 9 million customers in more than 100 countries, with net written premiums of $8.2 billion (in 2016). The company also benefits from having three well reputed Omani shareholders—Ominvest, W J Towell Group and OHI Group.
Al Ahlia is managed by a strong and experienced leadership team, with over 150 years of collective experience at the executive level.
It commands a significant share of the insurance market in Oman, and has been consistently achieving underwriting profitability due to a combination of strong local technical capability within an internationally tested underwriting framework, a well-developed multi-channel, pan-Oman distribution network, as well as an innovative product range supported by a robust growth strategy. Further, the company is offering attractive visible returns to investors in the form of consistent projected dividends.