MUSCAT: As much as OMR2 billion is expected by the Oman government from divesting stakes in state-owned companies, said a top-level official of the Capital Market Authority (CMA) here on Monday. Abdullah bin Salem Al Salmi, executive president of the Capital Market Authority, said that the companies that are planning to raise fund through initial public offerings include Mining Development Oman and an electricity distribution firm. Further, seven national insurance firms are planning share offerings.
The newly formed company, which was promoted by four state-owned investment arms of the Oman government — the State General Reserve Fund (SGRF), Oman Investment Fund (OIF), Oman Oil Company and Oman National Investments Development Company (Tanmia) — had said in March that the promoters will bring in OMR60 million and the remaining OMR40 million will be raised from the investing public through an initial public offering. He said that the initial plan of Mining Development Oman was to float the shares in the second half of this year. “(However), we hope to see the share offer in the first quarter of next year.” “This will also help to activate the secondary market,” added Al Salmi, while addressing the Outlook Oman Forum.
The CMA chief said that Al Ghubra Power and Desalination Company is also planning to float shares. Further, seven national insurance firms are planning to float shares in the market by next year in line with a new regulation. However, Al Salmi said that the market capitalisation of Muscat Securities Market (which is little higher than OMR17 billion) is only 30 per cent of the country’s gross domestic product (GDP), which is against an average of 65 per cent in other GCC states.
Referring to the plans for a separate SME bourse, he said; “It is an ongoing project and we are planning with the Taiwan market. Although it is progressing, but at a slow pace as the market condition is not conducive.” The CMA chief said that the capital market has to play an important role in the near future.
