(MENAFN- Muscat Daily) Further to the successful conclusion of the private placement of 71.25mn Omantel shares to Omani individuals and institutions, the government, represented by the Ministry of Finance, on Saturday announced that the public offer of Omantel shares to Omani individuals will open on March 31 in the second phase of the Omantel divestment.
H E Saud Nasser al Shukaily, chairman of the supervisory committee for Omantel divestment at the ministry, expressed his satisfaction at the strong response received from Omani individuals and institutions during the first phase of the divestment involving the private placement.
The private placement was subscribed 1.99 times, with the government receiving bids for 141.70mn shares as against the 71.25mn shares on offer. The bids were attracted in the price range of RO1.50 to RO1.90 per share. As per the methodology laid down in the private placement memorandum, the CMA approved a cut-off price of RO1.51 per share.
During the second phase of the divestment, the public offer directed towards Omani individuals is at a fixed price of RO1.35 per share inclusive of issue expenses, and the offer will open March 31 and close on April 13.
During the past 12 months, Omantel shares have traded very actively on the Muscat Securities Market (MSM), with the highest price reached being RO1.72, and the lowest being RO1.38. The public offer price of RO1.35 per share is attractively priced to address the objectives set out by the government and is at a discount of around 13 per cent or 190bz to the last traded price of RO1.54 on March 19, a press release said .
With the intention of ‘sharing opportunities and spreading ownership', the Ministry of Finance had proposed to divest part of the government's shareholding in Omantel. The objective of this initiative was to increase ownership of Omani institutional and individual investors, to enhance widespread public participation in the privatisation process initiated by the government, to enhance trading activities and energise the market, to enhance domestic investment in the national economy, and to maximise shareholder value and proceeds.
Omantel has been declaring annual dividends of 115 per cent over the past two years, which would effectively offer a good dividend yield of 8.51 per cent to investors at the current offer price of RO1.35 per share.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.