Omani investors eagerly wait for initial public offerings of insurance


20/04/2017 06:10 AST

Omani investors are eagerly waiting for Initial Public Offerings (IPOs) of four insurance companies, which are expected within the next three to four months.

According to sources, Oman and Qatar Insurance, Falcon Insurance, National Life Insurance and Al Ahlia Insurance Company are getting ready to come out with their IPOs in line with a Central Market Authority (CMA) regulation.

In fact, CMA has approved a request from insurance firms to offload a minimum of 25 per cent stake of promoters, instead of the normal 40 per cent disinvestment carried out in IPOs.

Most of the insurance companies have already appointed issue managers and the share offers will be floated one after the other.

Market sources said there is enough liquidity in the market and the investment funds are waiting for suitable investment avenues.

“Several investment funds have idle funds, which they want to deploy in initial public offerings,” said a market source, who did not want to be quoted. Also, there was not even a single share offer in the last one year or so.

The insurance company issues are expected to receive an overwhelming response due to attractive pricing. Insurance companies that are listed on the Muscat Securities Market have attractive valuations due to a slump in the market and the companies that is coming out with IPOs will have to take in to consideration their peer group companies.

Growth in premium

Oman’s insurance companies have posted a 1.9 per cent growth in gross direct premium income at OMR454.64 million in 2016, from OMR446.18 million in the previous year. The Life insurance portfolio posted a 213.3 per cent growth to OMR33.40 million in 2016, marking the highest rise among different insurance segments, CMA said in a recent report.

Although the Sultanate has 22 insurance companies (11 locally incorporated and 11 branch operations of foreign firms), only four companies—Dhofar Insurance, Oman United Insurance, Al Madina Takaful and Takaful Oman—are listed. Of these, Al Madina Takaful and Takaful Oman are Islamic insurance firms.

The new listings will mark a new chapter in the Omani insurance sector, as local companies will be able to withstand competition by strengthening their financial, technical and human resources. A higher capital base will make these institutions large enough to underwrite more risks and retain premiums within the country.

Times of Oman
Market News
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | News Archive
Most Viewed Companies
Ticker Price Volume
QNBK 142.5 107,519
DAMAC 2.9 10,745,709
WAHA 1.75 159,227
BKIZ 0.08 603,308
EEC 20.95 333,420
SABIC 98.4 2,362,937
BKNZ 0.09 1,072,179
Recent News

Honeywell, Aramco sign agreement for advanced digitisation in Oil&Gas
Honeywell and Saudi Aramco have signed a memorandum of understanding (MoU) for implementing the Industrial Internet of Things (IIoT) and advanced digitisation within Saudi Aramco’s operations.
<

Saudi Arabia Signs $50 Billion Worth Of Oil Deals With The U.S.
U.S. companies signed billions of dollars worth of deals with Saudi Arabia’s oil and gas industry during President Donald Trump’s visit to the Kingdom over the weekend, boosting bilateral business ti

Oil prices rise as market expects extended production cut
Oil prices rose on Wednesday, supported by confidence that an OPEC-led output cut aimed at tightening supply would be extended to all of 2017 and the first quarter of next year.

Brent futu

Leading security firm plans Oman operations
Le Beck, which has a presence in some of the Gulf Cooperation Council (GCC) countries, is planning to begin operation in the Sultanate in coming months, a top-level official said.

In an in

National Finance to raise OMR46m to fund ‘cash buyout’ of Oman Orix
National Finance Company plans to raise OMR45.8 million by way of a rights issue and a perpetual bond issue to raise fund for its ‘cash buyout’ of the Oman Orix Leasing Company.

The Board

GulfBase GCC Index
Search By
  • Company Symbol
  • Company Name
  • Mutual Fund Name
  • News Content
Send this page to a friend

Poll

Looking ahead, what change you are more likely to make in investing in your domestic stock market?