Omantel stock to floatation June 11

Omantel continues to hold a 100% stake in mobile operator Oman Mobile, which was established as a separate entity last march. With more than 900,000 mobile subscribers, investors are likely to be keen to partake in the Omantel IPO in order to gain access to Oman Mobile shareholding.

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By  Tawanda Chihota Published  June 3, 2005

Oman’s state telco Omantel is set to commence trading publicly on June 11, with the sultanate’s Capital Market Authority (CMA) having approved the offer document. Omantel, which posted a net profit of RO72.8 million (US$189 million) in 2004, will enter the capital market with its initial public offering of 225 million shares, representing 30% of Omantel’s total share capital, at a price of RO1.280 per share — RO1.180 premium and 100 baisa nominal value — aggregating to RO288 million. Omantel's issued and paid up capital comprise 750 million shares with a nominal value of 100 baisa each. Omantel's equity capital currently stands at RO75 million. Of the total 225 million shares on offer, 157.5 million (70%) will be offered to Omani individual investors and 67.5 million shares (30%) to specified pension funds and charitable organisations. The offer will not be open to foreigners and the minimum allotment is up to 3,000 shares. Omantel continues to hold a 100% stake in mobile operator Oman Mobile, which was established as a separate entity last march. With more than 900,000 mobile subscribers, investors are likely to be keen to partake in the Omantel IPO in order to gain access to Oman Mobile shareholding. The number of fixed-line phones in Oman, including public pay phones, stood at 239,000 at the end of 2004. Bank Muscat's investment banking division is the lead manager of the IPO, with HSBC Middle East acting as the sole financial adviser. Fincorp is the co-manager, while collecting banks are Bank Dhofar, Bank Muscat, HSBC Middle East (Oman), NBO, Oman Arab Bank and OIB.

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