Al Ahlia Insurance IPO oversubscribed

August 07, 2017

Al Ahlia Insurance Company, the leading property and casualty insurer in Oman, on Monday announced the successful closure of its initial public offering (IPO).

The RO7.5mn offering was comfortably oversubscribed and attracted strong levels of demand from both retail and institutional investors across the country, making it the first successful IPO in 2017, Al Ahlia said in a press release.

Al Ahlia had offered 25mn existing ordinary shares (or 25 per cent of total share capital) at a price of 300bz per share. The subscription period for the issue closed on Wednesday. Bank Muscat’s investment banking division was the financial advisor and sole issue manager for the IPO.

The offer price of 300bz per share implies an opening market capitalisation of RO30mn for Al Ahlia. Trading of the company’s shares is set to commence on the Muscat Securities Market on or around August 17.

Commenting on the successful closing of the IPO, Lloyd East, regional CEO, RSA (Middle East) and managing director of Al Ahlia said:

“We are proud and delighted by the response we have received from such a wide range of investors in Oman. The overwhelming support and warm welcome we have received reflects the confidence in Al Ahlia’s differentiated business model and recognises this unique opportunity to invest in an established and profitable insurance company offering an attractive projected dividend yield.”

“We are thrilled to welcome our new institutional and individual investors into the fold of Al Ahlia. We would like to thank Bank Muscat investment banking team for managing the IPO and making this issue a success in spite of the challenging market conditions. We take this opportunity to extend our sincere thanks to all other partners for managing the IPO process in an efficient manner and also the Capital Market Authority for their continued support and guidance.”

Al Ahlia is backed by strong promoters led by RSA Insurance Group and well supported by experienced local shareholders namely Ominvest, WJ Towell Group and OHI Group.