Muscat: AMAN REIF (Under formation) announced the launch of its IPO on Tuesday, December 31, 2019, which will commence from Thursday, January 2, 2020.
According to the officials, it will be for 15 days and will conclude on January 16, 2020.
Abdul Samad Al Maskari, CEO of Thara Global Business, the Financial Adviser and Investment Manager of the fund said, “The fund’s capital amounts to OMR20 million with 50 per cent of the funds being offered in a private offer while the other 50 per cent will be offered via a public offer of OMR10 million.”
During the press conference, Al Maskari stated that the fund would comprise 200,000,000 units with 50 per cent of the units offered to Sandan as part of the proposed consideration for Sandan Development, selling the premises to the fund, at an offer price of 100 Baisas per unit.
“The number of units offered to the public through this IPO is 100,000,000 units. On completion of the IPO, the public ownership will stand at 100,000,000 units with a value of 100 Baisas per unit to represent 50 per cent of the fund’s total issued capital. The units will be offered to investors in the IPO at an offer price of 102 Baisas per unit.
“The private offer price is 100 Baisas per unit. As for the public offer price of 102 Baisas per Unit, it comprises offer price of 100 Baisas per unit and Offer expenses of 2 Baisas per unit,” Al Maskari added.
He continued saying that the IPO is open to Omani and non-Omani individuals and juristic persons.
He also noted that investors are divided into two categories; the first includes Omani and non-Omani individuals, who apply for 1,000 units as a minimum, and in multiples of 100 units thereafter up to a maximum of 10,000,000 units. Whereas, the second category includes Omani and non-Omani individuals and juristic persons who apply for 10,000,100 units as a minimum, and in multiples of 100 units thereafter up to a maximum of 20,000,000 units.
“The fund would distribute at least 90 per cent of annual net profit as dividends to the unit holders which will translate to an annual dividend yield of 7 per cent. The dividends will be paid out to unitholders semi-annually,” Al Maskari said.
He mentioned about the promising prospects of investing in the real estate sector in Oman and generate stable and sustainable returns for the investors as well as support the government efforts to promote economic diversification.