Al Maha’s initial public offering to open on Tuesday

16/09/2014 01:45 AST

Al Maha Ceramics will float its OMR7.9 million-initial public offering today.

The share offer will be opened for public subscription for one month until October 15.

Oman Arab Bank's investment banking division is advising Al Maha Ceramics on its proposed initial public offering of 20 million shares.

Al Maha share is offered at 397 baisas per share – 295 baisas premium and two baisa issue expenses.

The company is divesting 40 per cent of its OMR5 million paid up capital.

Al Maha stakeholders are divesting their holding in favour of investing public and the proceeds of the share offer will go to the stakeholders who divest their holding.

Al Anwar Holding is the majority stakeholder of Al Maha with its 37 per cent holding in the company. Apart from Al Anwar, the major shareholders of Al Maha are Ministry of Defence Pension Fund and Mustafa Sultan Enterprises.

The Sohar-based ceramic tiles producer, which has an installed capacity to produce six million square metres of ceramic tiles per annum, is waiting for government approval for additional gas allocation for expanding the capacity to 9.5 million square metres per annum, sources said earlier.

The Muscat Securities Market has been witnessing better activity in the primary market, with several companies have either raised funds from investors or are in the process of finalising their IPO plans.

Three major companies have raised funds from investing public since the beginning of the year.

Oman Telecommunications Company's OMR204 million share offer was the biggest one, which was followed by two power producers – Al Batinah Power Co and Al Suwadi Power Company.

Times of Oman