Al Ahlia Insurance finalises share allotment

Muscat: Al Ahlia Insurance, which closed its OMR7.5 million initial public offering subscription on August 2, has decided to allot a minimum of 15,000 shares and 35 per cent for all additional share applications in the case of retail investors.

As far as institutional investors (or those who applied for 250,100 shares or more) are concerned, applicants will get 24.7 per cent allotment.

The share offer, which was subscribed by around 2.42 times, mopped up OMR18.2 million in one-month subscription, said a statement from the Capital Market Authority.

The company offered 25 million shares (which represent 25 per cent of the company’s paid-up capital) at 300 baisas per share. The allotment notices will be dispatched on August 16, while the listing of shares on the Muscat bourse will commence on August 17, according to the company’s prospectus.

About 65 per cent of the offered shares were reserved for small investors applying for a minimum of 1,000 shares to a maximum of 250,000 shares, with the remaining 35 per cent reserved for large investors applying for a minimum of 250,100 shares up to a maximum of 2,500,000 shares.

The company, which has a market share of 14.4 per cent, has a well-developed multi-channel distribution network in Oman, which includes 25 branches and strong co-branded relationships in the motor affinity segment.

The promoters will continue to hold an aggregate of 75 per cent shares post-IPO and will continue to ensure reliable management and governance of the company.

Al Ahlia is one of the two general insurance companies in Oman to have consistently delivered underwriting profits, as well as positive investment income since 2011.