Oman: New share sales offer more opportunities for investors

03/05/2015 01:20 AST

Presence of new offerings in the market represents an opportunity for investors to enter the Muscat Securities Market (MSM), a senior official said.

Abdullah bin Salim Al Salmi, Executive Chairman of the Capital Market Authority (CMA) in a statement to ONA said that it is important to encourage individuals to save and channel their funds in the appropriate investment windows.

Financial securities market was found to strengthen this trend, especially since it helps the owners of medium-sized or small size savings, who are often unable to recruit those savings in specific investment fields due to the lack of experience or a full-time or lack of adequate capital.

He said that the initial public offerings (IPOs) in turn contribute to strengthening the market and improving the efficiency.

This in turn will revitalise the national economy in the coming years by strengthening its role as a window for the use of savings from various segments of society to fund economic projects and diversify the economy.

Al Salmi pointed out that conversion of companies into joint stock to allow its founders liquidate part of their assets in companies offered to start new projects that would be eligible for public offering in the future, as the public offering and listing on the market enable them find out the true value of their investments in these companies.

He confirmed that CMA is always seeking to expand the investor base by having a rewarding quota for small investors to contribute to the revitalisation of and trading in securities and to reduce as much as possible of institutional investor control on the stock, who usually focuses on long-term investment without contributing to the liberation of stock and revitalisation of trading operations, adding that CMA is trying that the small investors have the priority and preference to take advantage of the market.

Times of Oman