(MENAFN- Muscat Daily) Following the success of the private placement of shares, Omantel's public offer is expected to receive a good response in terms of subscription, given the attractive offer price and the dividend yield, according to H E Saud al Shukaily, chairman of the Supervisory Committee for Omantel divestment at the Ministry of Finance.
The public offer of Omantel shares to Omani individuals opened on March 31 under the second phase of the government's disinvestment plan, after the successful completion of the first phase involving the private placement of 71.25mn shares to high networth Omani individuals and institutions on a book-building and auction basis.
The Oman government, represented by the Ministry of Finance, reserved a further 71.25mn shares under the public offer for Omani individuals at an attractive fixed offer price of RO1.350 per share.
Addressing a press conference on Tuesday at the Ministry of Finance, H E Shukaily said, ''I have to express our satisfaction as regards the first phase of the divestment involving private placement, which was oversubscribed almost 200 per cent. We expect a good response to the public offer.''
''With an 8.5 per cent dividend yield and 115 per cent annual dividends, I personally believe, it is a good investment opportunity. However, I have to caution all investors that they have to read the investment memorandum carefully and also seek proper professional advice before considering the investment,'' he said.
H E Shukaily said that the proceeds of the divestment will go to the state reserves that will be used for future investments.
''With the discount that is being given to new investors in the public offer compared with the existing market price of Omantel shares and the demand that we have seen for the private placement of shares, there is an indication that the demand for the public offer would also be good. We do not see any issue regarding the full subscription of the public offer,'' H E Shukaily added.
The public offer price of RO1.35 per share is currently at a discount of 150bz or 11.1 per cent to the ex-dividend Omantel share price of RO1.5 per share on Tuesday.
Abdullah Zahran al Hinai, deputy general manager of investment banking at Bank Muscat, which is the issuer manger and financial adviser for the divestment, said, ''From the feedback and discussions that we are having with people, I think the issue is very positive. If you look at the reports of brokerages during the first phase of the issue, they all came at very interesting price point and valuation of the company. All these factors will add to ensure that the second phase will also be a good success.
''We expect that some of the institutions that have not been able to get shares in the private placement will be interested to buy in the secondary market once the shares are allotted,'' added H
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