Muscat: Share offers on the Muscat Securities Market (MSM), including initial public offerings (IPOs), stock dividends, private placement and preferential shares, touched OMR1.31 billion last year. There were 58 such issues on the Muscat course and some of these listings were from closed joint stock companies, funds and sukuk.
The value of the listings of the joint stock companies stood at OMR277.6 million, the most notable of which is Phoenix Energy with a capital of OMR146.2 million. The company offered 35 per cent of its capital for public subscription. More than 44,000 transactions worth of OMR74.5 million were made on share during the offer period. The share, whose value ranged between 160 baisas to 141 baisas closed at 144 baisas; an increase by 34 biasas compared to the offer price of 110 baisas.
The market value of the company at the end of December 2015 stood at OMR210.6 million. The company manages Sur power plant, the biggest independent power plant in the Sultanate. The company, which cost OMR632.5 million, started commercial operation in December 2014 with production capacity of 2,000 megawatt.
As many as 25 joint stock companies increased their capital base by providing shareholders with stock dividends or through private placement and preferential rights last year. The new shares from convertible bonds of Renaissance Services and Oman Finance Services were listed on the Muscat Securities Market and added new depth to the market and brought many benefits to shareholders.
Also, the market capitalisation of the joint stock companies increased by OMR131.3 million, of which the banks increased their capitals by about OMR86 million. The securities and sukuk market has witnessed a remarkable shift after listing the first sovereign sukuk of the Sultanate, worth OMR250 million on the market.
The two issues of the government development bonds, worth of OMR200 million and OMR300, respectively, were listed on the market alongside with convertible bonds worth of OMR32.4 million by Bank Muscat and OMR1.8 million worth securities by Oman Financial Services Company. The value of the new listings at the securities and sukuk market thus crossed OMR784.2 million.
As many as seven new closed joint stock companies were listed on the MSM in 2015, which were Canadian Innovation Company for Education Services, Musandam Power, Duqm Renaissance Holding, Renaissance Utility Management, Quriyat Desalination, Yiti Tourism Development and Oman and Brunei Asset Management. Besides, 16 additional companies also increased their capitals. The value of the listing of the closed joint stock companies stood at OMR235.1 million.
NIFCO Fund for Gulf shares, with a capital of 25 million units, was also listed at the market at $1 per each unit. Majan, Al Kawthar and Oman Developments Funds also increased their capitals through free units and preferential rights.
The new listings maintained the MSM capitalisation at OMR15.78 billion by the end of December 2015, a growth of 8.3 per cent compared to the same period of 2014 (OMR14.564 billion), despite the decline witnessed by share prices due to the slump in oil prices, the slow economic growth and poor performance of Gulf stock markets.