Muscat: Takaful Oman Insurance, the second Islamic insurance firm in the Sultanate after Al Madina Takaful, has raised OMR22-23 million from the investing public through an initial public offering (IPO) that closed a month-long subscription on December 2.
The company offered 40 million shares at 102 baisas per share, which included a nominal value of 100 baisas and two baisas as issue expenses.
The company's OMR4 million share offer was oversubscribed to the tune of five-and-a-half times — four times in the case of retail segment and seven times by institutional investors.
Those who applied for 100,000 or less shares have been allotted a minimum of 5,000 shares and all applicants for above 5,000 shares were given 7.6 per cent allotment. Also, those who applied for 100,100 shares or more (institutional investors) were allotted 15 per cent of the application.
Since Takaful Oman is a new company, the share listing will be delayed and is expected only on January 2, after completing all procedures as per the company law.
Takaful Oman will conduct its consultative general meeting on December 31 to elect board members and will thereafter seek company registration with the Ministry of Commerce and Industry (MoCI).
Takaful Oman earlier said that the company would start operations immediately after completing all formalities that include a consultative general meeting.
Oman's leading banks, reputed investment firms and key insurance providers have come together to form Takaful Oman, one of the first companies to offer Takaful insurance products and services based on Sharia principles.
Takaful Oman is promoted by leading promoters namely, Oman National Investment Corporation Holding, National Investment Funds Company, Oman Investment Corporation, National Bank of Oman, Bank Muscat, t'azur Takaful Insurance Company and Blue Door Investment Services. The promoters will have 60 per cent stake in the company.
Takaful Oman will focus on developing and creating the insurance market while being a profitable company and not function as an investment company. Further, the company will focus on writing quality business and will not focus on only growing its top line.