BUSINESS REPORTER
The Initial Public Offering (IPO) of Oman Reinsurance Company SAOG (Under Transformation), the first reinsurance company to be established in the Sultanate, opens on October 3, 2021 with 117.647 million shares available for public subscription at a fixed price of 86 baizas per share (inclusive of 1 baizas per share as issue expenses).
The issue of 117.647 million new shares amounting to RO 10 million will increase the issued capital of the Company to RO 40,000,000 divided into 417,647,059 shares, Oman Re said in its prospectus.
“The Company is undertaking the IPO in order to comply with the requirements of Royal Decree 39/2014 which amended the Insurance Law, requiring existing licensed insurance and reinsurance companies to be established as SAOG by August 17, 2017 and as per 2019 EGM, and to increase the issued capital to RO 40 million. The proceeds of the Offer (including Offer expenses) will accrue entirely to the Company to fund its operations and growth plans,” it further noted.
The IPO will increase the issued and paid-up capital from RO 30 million to RO 40 million, assuming full subscription. The Offer will be open to Omani and non-Omani individuals and juristic persons, who have their accounts with the MCD, as on the date of / or during the subscription period, which closes on October 17, 2021.
Leading investment advisory firm Ubhar Capital SAOC is the Financial Advisor & Issue Manager for the IPO. Collecting banks are National Bank of Oman, Oman Arab Bank and Sohar International Bank.
Incorporated in July 2008 with a paid-up capital of RO 5,000,000, Oman Re’s capital was gradually increased to RO 30,000,000 (approx $78 million). The capital of Oman Re is proposed to be increased to RO 40 million post-IPO.
The official business started in 2009 and company wrote a premium of RO 1.2 million. Since then, the company has grown significantly and have closed 2020 with gross premium of RO 24.8 million
