(MENAFN- Muscat Daily) The much-awaited public offer of Omantel shares to Omani individuals opens today. This is the second phase in the government's divestment plan for the telecom service provider after the successful completion of the first phase, which involved a private placement of 71.25mn shares with high net worth Omani individuals and institutions on a book building and auction basis.
The government, represented by the Ministry of Finance, has reserved a further 71.25mn shares under the public offer for Omani individuals at a fixed offer price of RO1.35 per share. The public offer price of RO1.35 per share is at a 150bz, or 11.1 per cent, discount to the ex-dividend Omantel share price of RO1.50 on March 27, 2014.
While Omantel distributed annual dividends of 100 per cent in 2009, 2010 and 2011, the dividend was increased to 115 per cent in 2012 and 2013. At the annualised dividend rate of 115 per cent on the public offer price, the Omani investor will effectively get a dividend yield of 8.51 per cent, which is the highest among all the companies in the MSM30 index.
At its AGM on March 24, Omantel declared an interim dividend of up to 40 per cent, which will be paid in August this year; and investors in the public offer can benefit from the interim dividend if they hold the shares until August 2014.
Commenting on the public offer, H E Saud al Shukaily, chairman of the Supervisory Committee for Omantel Divestment at the Ministry of Finance, emphasised on the government's intention towards ‘sharing opportunities and spreading ownership' by divesting 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.
H E Shukaily further pointed out that, with 71.25mn shares on offer, the public issue was large and there was enough to be shared among Omani investors. The government in consultation with the CMA will endeavour to allot maximum shares, subject to oversubscription, and Omani investors may consider applying for the maximum limit of 10,000 shares for themselves and their family members.
The public offer will be open for subscription for two weeks and will close on April 13.
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