Wednesday 30 / October / 2024
Muscat: Oman's Capital Market Authority (CMA) provided more than OMR1.9 billion in funding to companies last year, an increase of 19 per cent compared to 2016, according to the CMA's annual report.
"The CMA has provided funding of more than OMR1.9 billion in 2017. This reflects the role of the stock market in stimulating the movement of the national economy and thrusting the wheel of comprehensive development," the CMA chairman, Yahya Said Abdullah Al Jabri, said in a statement.
"The amount of shares issued was OMR1 billion, the bonds issued in Oman were some OMR782 million and OMR45 million was for Sukuk issuances. The overall volume of the capital market was OMR17.95 billion at a 3.8 per cent upsurge compared to 2016," said Abdullah bin Salim Al Salmi, Executive President of the CMA.
Last year saw a strong return in initial public offerings (IPOs) following an absence in 2016 due to the fall in oil prices. The primary market witnessed a considerable and outstanding increase in the value and number of issues approved by the CMA, the report said.
Joint-stock companies issued more than OMR43 million in new shares, with more than OMR45 million in rights shares issues listed. Additionally, new issues of government bonds totalled OMR600 million. In total, more than OMR1.9 billion was listed, amounting to more than 2.616 billion shares.
The year 2017 also saw IPOs across the Gulf Cooperation Council (GCC) reach their highest levels in three years, according to the report. The total number of IPOs in the GCC states in 2017 was 25, including five real estate investment funds, compared to four IPOs in 2016 and six in 2015. Around $3.2 billion was raised from IPOs in 2017 compared to $700 million in 2016, a rise of more than 350 per cent.
The United Arab Emirates topped the GCC markets in proceeds of IPOs with 70 per cent of the total proceeds. The Saudi market maintained its leading position in terms of the number of offerings with 16 offerings in 2017 compared to three in 2016.
