Business


Omantel initial public offer closes on April 13


A view of the Oman Telecommunication Company’s building. File photo

Muscat: The public offer of Oman Telecommunication Company's (Omantel) shares to Omani individuals closes on April 13. It offers an investment opportunity in a strong and stable share at a price of OMR1.350 with a dividend yield of 8.51 per cent at this price.  

It is a good opportunity for Omani investors, who should visit the nearest bank to pick up application forms and information memorandum to subscribe to the issue for themselves and family members, says a press release.

The public offer price of OMR1.350 per share is currently at a discount of almost 150 baisas or more than 10 per cent to the ex-dividend Omantel share price of OMR1.490/1.500 per share as traded on Muscat securities Market (MSM) during the last week.

While Omantel distributed annual dividends of 100 per cent for 2009, 2010 and 2011, the dividends were increased to 115 per cent for 2012 and 2013. At the annualised dividend rate of 115 per cent on the public offer price, the Omani investor will effectively receive a dividend yield of 8.51 per cent, which is the highest among all the shares included in the MSM 30 Index.

The Omantel annual general meeting has approved an interim dividend of upto 40 per cent which will be paid in August 2014.

Leading brokerages and analysts have also given a thumbs-up to the issue.

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