(MENAFN- Muscat Daily) Takaful Oman Insurance Co's (under formation) initial public offering (IPO) will close on Monday. The company, promoted by leading banks, reputed investment firms and insurance providers, will be among the first to offer Sharia-compliant takaful in Oman.
Takaful Oman is offering 40mn shares at 102bz per share.
The success of an insurance company is primarily driven by its distribution channels, by managing investments and costs, a press release said.
The company will use bancatakaful and the agency model for its distribution. This is expected to provide it with an edge in terms of costs. As mentioned in the prospectus, the number of employees is expected to be about 64 by the fifth year. The lean management structure will further help in reducing costs.
The fact that financial institutions of repute, such as OIC, Nifco are participating promoters with large banks from Oman is a testimony to the compelling business proposition.
Further, the assumptions have been prepared using a conservative approach.The company has technical guidance on products from T'azur Takaful Insurance Co, also a promoter. This, combined with the experience of ONIC Holding, which is also a promoter, contributes substantially to the learning curve of the company.
The firm has already got its products certified by a CMA-approved actuary and will be in a position to offer them in the market soon after incorporation and CMA approval, the release added.
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