Omantel IPO closes with significant over-subscription

The total value on the shares on offer amounts to RO288 million and Omantel's shares are set to begin being traded on the Muscat Securities Market starting July 31.

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By  Tawanda Chihota Published  July 12, 2005

The initial public offering of 30% of Oman state telco Oman Telecommunications closed July 10, having been three times over-subscribed. More than 163,000 investors subscribed for shares, pledging a total of RO700 million (US$ 1.82 billion). The total value on the shares on offer amounts to RO288 million and Omantel's shares are set to begin being traded on the Muscat Securities Market starting July 31. They will open trading at a share price of RO1.280. The first week of the subscription for shares, which opened June 11, saw the collection of RO11 million from almost 10,000 individuals, while the second week saw a collection of RO21 million from 19,000 individuals, and the third and fourth weeks saw the collection of RO29 million and RO110 million from 27,000 and 63,000 individuals respectively. Omantel executives have not been willing to speculate on the allotment of shares given the over-subscription, but the company is looking to honour its pledge to award 3,000 shares to all the retail investors. A total of 15 pension funds/institutions have also been allocated shares. But their entire demand could not be met either.

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