Muscat: The IPO of Aman REIF (Under formation) which opened on January 2 and closes on February 2, is seeing strong demand from individual and institutional investors in the Muscat Securities Market.
Abdul Samad Al Maskari, CEO of Thara Global Business and the financial adviser and investment manager of the Fund, expressed his happiness with the strong investor response for the IPO. He said that the company has been receiving, through various channels, many inquiries about how to invest in the fund, and what are the desired returns from such an investment. Al Maskari also added that the awareness of the Omani investor has grown significantly over the past years, with many investors well aware of the importance of investing in the stock market rather than traditional investments, which have become subject to many variables.
He also added that offering the fund for IPO contributes to the expansion of the public ownership of the fund and supports the aspirations of investors to participate in the ownership of projects and obtain rewarding returns that develop their savings.
Al Maskari stressed that investment in the promising real estate sector in the Sultanate supports the efforts to promote economic diversification led by the government and contributes to the development of both national and foreign capital.
The number of units offered to the public through this IPO is 100,000,000 units with a value of 100 baisas per unit representing 50 per cent of the fund’s intended total issued capital. It will be offered to investors at an offer price of 102 baisas per unit. The units representing the other 50 per cent of the fund’s total issued capital are 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 private offer price is 100 baisas per unit while the public offer price is 102 baisas per unit which comprise an offer price of 100 baisas per unit and issue expenses of 2 baisas per unit.
The IPO is open to Omani and non-Omani individuals and juristic persons. Investors are classified 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 objective of the fund’s IPO is to provide an excellent opportunity to invest in a developed real estate light industry asset, which will also provide recurring income through rental income and capital growth on the back of growth in the industrial sector in the Sultanate.