(MENAFN- Muscat Daily) The first phase of the government's divestment of a 19 per cent stake in Omantel through a private placement has been subscribed 1.99 times.
''The private placement was subscribed 1.988 times, with interested investors bidding for the shares in the price range of RO1.5 to RO1.9 per share,'' the Muscat Securities Market (MSM) said in an announcement on Sunday. The subscription process for the private placement process, which formed phase-1 of the government's divestment plan in Omantel through the book-building process, ended on March 12, after opening on February 27 for a two-week period.
The cut-off price at which the private placement was fully subscribed was RO1.511 per share, according to the MSM. ''Based on the total demand at or above this cut-off price, allotment will be made as per the pro-rata mechanism specified in the private placement memorandum.''
It was announced that the allotment has been approved by the CMA and the transfer of shares on this basis is expected to be completed by Monday.
Following the announcement, Omantel shares fell 2.2 per cent to close at RO1.555 on the MSM on Sunday. The government is in the process of divesting 19 per cent, or 142.5mn shares, of the issued share capital of Omantel, effectively reducing its holding from 70 per cent to 51 per cent in the company in two phases. Phase-2 of the divestment, for the sale of the balance 71.25mn shares, is expected to open to Omanis individuals in the last week of this month.
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