Al Maha share offer raises OMR155m

29/10/2014 05:54 AST

Al Maha Ceramics, which raised OMR155.34 million from investing public for its OMR7.9 million public issue, has allotted a minimum of 200 shares and thereafter at the rate of three per cent for additional shares applied in the case of retail applicants.

As far as mutual funds are concerned, the share allotment is four per cent, said a top-level official at the Capital Market Authority (CMA).

The initial public offering was subscribed to the tune of 19.5 times — 17.3 times in the case of retail investors and 24.7 times in the case of mutual funds, which was the second category. As many as 34,851 investors applied for the share offer. The shares will be listed on the Muscat Securities Market on November 3.

Sources said that refund of excess money to investing public has already been started and will be completed by Wednesday.

Al Maha offered 20 million shares or 40 per cent of its paid up capital at 397 baisas per share — 295 baisas premium and two baisa issue expenses.

As much as 70 per cent of the shares were reserved for individuals applied for 100,000 shares or less, while the remaining 30 per cent was allocated to local mutual funds.

Al Maha Ceramics has projected a cash dividend of 35 per cent for 2014, which is payable by March 2015. The company, which has an installed capacity of six million square metres per annum, is running close to 100 per cent capacity utilisation. The capacity utilisation was 102 per cent and 104 per cent in 2013 and 2012, respectively.

Al Maha Ceramics, which has a strong presence in the Gulf Cooperation Council (GCC) markets, sells 55-60 per cent of its total production in the local market. Apart from GCC markets, the company exports its products to Yemen and Jordan as well.

However, as much as 64 per cent of the company's revenue comes from domestic market.

Times of Oman