Times of Oman
Nov 26, 2015 LAST UPDATED AT 04:03 AM GMT
Ominvest plans private placement OAB
December 19, 2012 | 12:00 AM

Muscat: Oman International Development and Investment Company (Ominvest) is looking at divesting a part of its stake in Oman Arab Bank (OAB) through a private placement, in addition to its plans to divest 21 per cent holding in the bank through an initial public offering (IPO).

Bahrain-based Arab Bank, the second partner of OAB, will divest four per cent stake in the bank in favour of investing public, taking the total divestment via IPO route to 25 per cent.

However, it is not clear what percentage of Ominvest's holding will be diluted by way of the proposed private placement.

Market sources said that the investment holding company might have started negotiation with potential buyers for the private placement. Ominvest in April said that the two partners are planning to offer 290 million shares through an IPO.

"Although the banks are doing well, the valuations are depressed. So, I am not sure whether they will get the right price for their share offer," said a senior market analyst, who does not want to be quoted.

Ominvest shares surged ahead by 1.9 per cent to 376 baisas on MSM yesterday. Presently, Ominvest has 51 per cent stake in the Omani bank, while the remaining 49 per cent is with Arab Bank.

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