(MENAFN - Muscat Daily) Al Madina Takaful's initial public offering (IPO) opened for subscription on Tuesday. The company is the first insurance provider to secure necessary regulatory approvals for converting to takaful operations through the IPO.
The IPO entails an offer of 66.66mn shares to retail and institutional investors at a price of 140bz per share - including a nominal value of 100bz per share, premium of 38bz per share and 2bz per share in offer expenses. The subscription will close on November 27.
Of the 66.66mn shares on offer, 43.33mn shares, representing 65 per cent of the offer, will be allotted to investors subscribing for up to 100,000 shares while 23.33mn shares, representing 35 per cent of the offer, will be allotted to investors subscribing for 100,100 shares or more.
After the successful completion of the IPO, Al Madina Takaful will have a total paid-up capital of RO16.67mn. The IPO is lead managed by bank muscat and subscription banks include bank muscat, National Bank of Oman, Oman Arab Bank, Bank Sohar and Ahlibank.
The IPO will give investors the opportunity to invest in a profitable and growing takaful company at attractive valuations. It will migrate its entire business to takaful, thereby becoming the first operational and profitable takaful company in Oman, a press release said.
Announcing the launch of the IPO, chairman Dr Mohammed al Barwani said, ''We are very proud to be the flag-bearers of takaful in Oman. The large unmet demand for takaful insurance means that Al Madina is uniquely placed to become a market leader for takaful products and services. With our strong history, experience and good performance, together with the patronage of our customers, strength of the promoter group and the robust partnerships we have established, we are confident that we will lead and contribute to build the takaful industry in Oman. We are proud to share this opportunity with the people of Oman.''
He added, ''What is of particular significance is that, as the company is fully operational, on successful completion of the IPO, the shares of Al Madina will be tradable in accordance with Sharia principles from the listing date which is expected to be December 10.''
Revealing the future strategy, chief executive Gautam Datta said, ''Together with our existing and established network of key distributors, our aim is to start operating as a full-fledged takaful provider from January 1, 2014, subject to the completion of the IPO and the issuance of an administrative decision by the Capital Market Authority (CMA).''