Muscat: Following the successful investor road show held in Muscat, Oman Qatar Insurance Company, SAOG (under transformation)–OQIC, held a dinner meeting with investors from the Dhofar region in Salalah on September 26.
The meeting was well attended by a large group comprising institutional investors and high net-worth individuals, who expressed a strong interest in the Initial Public Offering (IPO) of OQIC.
“As a leading insurance company in the country, we serve a large base of loyal customers in the Dhofar region through our strategic presence in Salalah. We value the relationships we have built in the Dhofar region, and it is only right for us to extend our IPO offer to our partners, customers and other stakeholders in Salalah and other adjoining places,” said Navin Kumar, chief executive officer, OQIC.
“It is our way of expressing our gratitude to our customers and partners that has made us successful over the years. I am extremely pleased with the interest and enthusiasm that we witnessed, both in our meetings in Salalah and in Muscat, which truly underlines the persuasive investment case we have in the OQIC IPO.”
Based on the strong response, Oman Arab Bank is providing finance to its customers for up to 50 per cent of their IPO application for retail investors. Investors are advised to take advantage of this, and plan to complete the process early and submit their applications up to October 3. Application forms can be submitted at any branches of the subscription banks, Bank Dhofar, National Bank of Oman and Oman Arab Bank before close of official banking hours on October 5.
OQIC is offering 25,000,000 shares at an offer price of 160 baisas per share, (comprising a nominal value of 100 baisas per share, premium of 58 baisas per share and expenses of 2 baisas per share).
Following the IPO, the company expects to generate a five-year average dividend yield of 10 per cent. This compares favourably with the average dividend yield of 8 per cent for the insurance companies currently listed on the Muscat Securities Market (MSM). OQIC expects to pay its first dividend following the IPO in April 2018. The IPO is priced at a discount of about 14 per cent (P/B) to national peers.
The company’s January-July 2017 performance as per audited financials is in line with the estimated projection for 2017. Total GWP has gone up by 27 per cent and net profit for the period is up 158 per cent on a year-on-year basis. As on July 31, 2017, EPS and BV stood at 22 baisas and 143 baisas, respectively.