Oman's Al Maha share offer receives overwhelming response

28/10/2014 06:01 AST

The public issue of Al Maha Ceramics, which closed subscription of its OMR7.9 million initial public offering on October 15, has received an overwhelming response with the issue subscribing to the tune of around 19 times, sources familiar with the primary offer said.

However, an official source at the Capital Market Authority (CMA), said that the reconciliation is not yet complete and a final approved figure will be available only on Tuesday.

The issue might have mopped up somewhere close to OMR150 million, if one goes by the subscription figure.

20 million shares

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. Oman Arab Bank's investment banking division is advising Al Maha Ceramics on its initial public offering.

CMA sources said that little higher than 30,000 investors applied for the share offer and majority of them are retail investors. As much as 70 per cent of the shares were reserved for individuals applying for 100,000 shares or less, while the remaining 30 per cent is to be allotted to local mutual funds.

Al Maha Ceramics Co has projected a cash dividend of 35 per cent for 2014, which is payable by March 2015, and the shares will be listed on November 3.

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 Gulf Cooperation Council 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.

Al Anwar Holdings is the majority stakeholder with around 36 per cent holding in the company, before the public issue. Apart from Al Anwar, the major shareholders of Al Maha are Ministry of Defence Pension Fund (10 per cent), and Mustafa Sultan Enterprise (10 per cent).

Times of Oman