Omantel IPO to open today

Oman's biggest initial public offering of 288 million rials ($748 million, Dh2.75 billion) worth of shares in state-run Oman Telecommunications Company (Omantel) will open for subscription today.

The Ministry of Finance will offer 225 million shares, or 30 per cent of the government stake, to Omani investors and institutions, according to the company's prospectus.

The share, with a face value of 0.100 rial, is being offered at 1.280 rials. The IPO will close on July 10, the prospectus said.

Foreigners are not eligible to buy the stock during the IPO. But foreign investors and institutions will be allowed to acquire shares from the secondary market three months after the firm is listed on the MSM, the prospectus added.

Twenty-one per cent of the shares on offer will be allocated to Omani individuals and the rest to pension funds and charitable organisations.

Analysts expect the MSM market capitalisation to reach five billion rials after Omantel lists from 4.7 billion rials.

The availability of quality stocks in large volumes on the bourse is expected to attract more institutional investors from the region.

The Muscat Securities Market, which hit an all time high of 5199.64 points on Wednesday, ended the week at 5153.22 points on Thursday. Trading values sank to 4.17 million rials on Thursday from 11.39 million rials recorded on the previous day.

Oman stocks rise to 7-year peak

Omani shares, hovering near seven-year highs, could rise further next week as new investors try to take advantage of the bull run, analysts said on Thursday.

"I expect the market to rise range-bound. Money is entering the market from regional investors, institutions and retail investors who had been on the sidelines but don't want to miss the opportunity," said Sankar Kailasam of Gulf Investment Services.

The index hit a life high over 5,200 points on Wednesday, climbing beyond 1998 highs. The bourse is up about 53 per cent so far this year, mirroring gains in nearby Gulf markets, riding high on record oil prices which have buoyed growth and liquidity.

Kailasam said investors may sell shares later this month to take advantage of the initial public offering of Oman Telecommunications Co (Omantel).

"Small investors are likely to sell shares around the middle of Omantel's one-month IPO, which is around the end of June," he said.

The bourse, one of the smallest in the region, has benefited from government reforms to boost transparency.