25/06/2013 09:10 AST
Oman Arab Bank, the Financial Adviser and Issue Manager to the Initial Public Offer announced that the offer of 2,282,051 shares was covered 13.1 times and attracted more than 4700 applications
The Capital Market Authority (CMA) has approved the allocation of Sharqiyah Desalination Company shares; a media statement reported that the details of subscriptions were as follows:
“The Category I applications, that is those applying for 10,000 shares or less, was covered 13.2 times. Category II applications, which are applications for more than 10,000 shares, was covered 13 times. As for the first category, which represents the small subscribers who subscribed for up to 10,000 shares, each subscriber was allocated 100 shares. The remaining shares in this category will be distributed in proportion (about 5.48 per cent) to the remaining applications. The second category subscribers, major subscribers who subscribed for more than 10,000 shares, were allocated 7.7 per cent of the subscribed shares.
To illustrate the allocation in Category I, an investor applying for 100 shares will receive full allocation while those applying for 200, 500, 1000 and 10,000 shares will receive 105, 122, 149, 643 shares respectively.
Lo'ai B. Bataineh of Oman Arab Bank said that the IPO offered an opportunity to the public to become shareholders in the first Independent Water Project in Oman and Oman Arab Bank is proud to be part of this. Lo'ai said, "We are happy that our efforts for a broad base participation have borne fruit. The IPO was only for individual investors and their strong response confirms that the retail market is receptive to good IPOs. This is positive for the further development of the capital markets in the country,"
Bataineh commended the efforts of his team at Investment Management Group and from Oman Arab Bank who worked diligently towards the success of this IPO. He also praised the hard work put in by other collecting banks, legal advisor and media team, in making this issue a resounding success.
He thanked the continuous support provided by Sharqiyah Desalination Company and its management, Muscat Clearing and Depository, Muscat Securities Market and most importantly the Capital Market Authority.
CPI Financial
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