(MENAFN - Khaleej Times) Nawras, the phone company controlled by Qatar Telecom QSC, is seeking to raise as much as 608 million in Omans first initial public offering in two years.
Nawras set a price range of 702 baisas to 902 baisas per share, the Muscat-based company said in an e-mailed statement on Tuesday. The bookbuilding process for the sale starts September 15 for a month.
Nawras on Tuesday set the price range for its upcoming initial public offering at between 0.702 and 0.902 Omani rials (2.33) a share, valuing the countrys second-biggest mobile operator at up to OMR586 million (1.5 billion) which would rank it amongst the five biggest listed companies in the sultanate.
The price range, which includes an issue expense of OMR0.002 a share, implies an initial market capitalisation of between OMR456 million and OMR586 million, the company said in an emailed statement.
Chief executive Ross Cormack, in a telephone interview, said he is confident the IPO price range reflects a fair sense of demand in the market. Were hoping to find some number in that range where the sellers meet the buyers, Cormack said.
We think this is a great company with a great story to tell, happening at a time when people dont have too much other opportunity to invest, Cormack said.
Market conditions for share listings in the region have shown some signs of improvement this year, after the value of IPOs in 2009 plunged 83.7 per cent year-on-year to just above 2 billion, according to Zawya.com data.
The total value of IPOs in the first six months of this year was steady at 1.2 billion, compared with the year earlier period, although 57 per cent of the capital raised in the MENA region. The Nawras share sale, to run from September 15 to October 14, is Omans first IPO since July 2008.
The final share price will be determined on the basis of a book building process and is expected to be announced on the October 24 with a Muscat bourse listing slated for October 27.
Were delighted at the level of interest and excitement that the IPO is generating here in Oman and elsewhere in the Gulf, and we are looking forward to welcoming new investors, retail and institutional alike, to the Nawras family, Cormack said.