Muscat: Al Maha Ceramics will float its proposed OMR7.9 million initial public offering (IPO) on September 16.
The share offer will open for public subscription for a month until October 15, Al Anwar Holding said in a disclosure statement posted on the Muscat Securities Market (MSM) website.
Oman Arab Bank's investment banking division is advising Al Maha Ceramics on its proposed IPO of 20 million shares.
Al Maha has already sought approval for its share offer, which is priced at 397 baisas per share, including 295 baisas premium and two baisas issue expenses.
The share offer is subject to approval from the Capital Market Authority (CMA) on the prospectus and completion of necessary formalities related to the IPO, Al Anwar's statement added.
The company is planning to divest 40 per cent of its OMR5 million paid up capital.
Divest their holdings
Al Maha stakeholders are planning to divest their holdings in favour of the investing public and the proceeds of the share offer will go to the stakeholders who divest their holdings.
Al Anwar Holding is the majority stakeholder of Al Maha with its 37 per cent holding in the company. Apart from Al Anwar, the major shareholders of Al Maha are the Ministry of Defence Pension Fund and Mustafa Sultan Enterprises.
The Sohar-based ceramic tiles manufacturing company, which has an installed production capacity of six million square metres of ceramic tiles per annum, is waiting for government approval for additional gas allocation to expand the capacity to 9.5 million square metres per annum, sources said earlier.
The company earlier said that the envisaged capital expenditure for the proposed expansion will be OMR7.5 million but no decision has yet been taken on the funding of the project. Presently, the company exports its products to Saudi Arabia, the United Arab Emirates, Lebanon and Jordan.
The Muscat Securities Market has been witnessing better activity in the primary market, with several companies having either raised funds from investors or in the process of finalising their IPO plans.
Among these, the OMR204 million share offer from Oman Telecommunications Company was the largest, followed by two power producers – Al Batinah Power Co and Al Suwadi Power Company.
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