Al Khalili United Enterprises, the flagship company of the Al Khalili Group, is planning to offload 40 per cent of its shares in an initial public offering next month, company sources and lead managers said. This is the first IPO after two companies – Voltamp Energy and Sohar Power – floated their shares almost one-and-a-half years ago.
“The company is planning to offer 40 per cent of its stake through the IPO. The group has a 30-year track record and therefore, it will be a premium issue,” Lo’ai Badie Bataineh, deputy general manager and head of the investment management group at Oman Arab Bank (OAB), said. OAB is the financial adviser and lead manager of the proposed IPO.
He said that the company has a paid up capital of RO15mn, which is split into 150mn shares with a face value of 100bz each. Therefore, the number of shares on offer will be to the tune of 60mn. “We have got an ‘in principal approval’ from the market regulator Capital Market Authority (CMA). We will get a final approval later, after submitting the offer document.”
“We are still studying the company’s valuation and it is too early to comment on the share premium. Definitely, it will be a premium offer. The issue will be floated before the end of February,” he said. Two international auditors are helping OAB to conduct the valuation.
A senior company official said the group is involved in a wide range of activities, including trading of building materials, hardware, lighting equipment, IT, and construction. The official, on condition of anonymity, said the group has two companies and Al Khalili United Enterprises holds a stake in the group’s construction arm. The official also noted that the group is well established and has built a track record over the years. Bataineh said that investors are waiting for attractive IPOs to park their funds. “This will activate the market with better liquidity.”
The issues of Galfar Engineering and Contracting, Voltamp Energy and Sohar Power helped to increase the market depth, he added. Although several companies were planning to raise funds by going public in 2008, the plans were postponed in the aftermath of the sluggish trend on the bourse.
Nawras, the second telecommunication service provider of the sultanate, is also planning an IPO and has appointed BankMuscat as its financial adviser for its forthcoming share offer. Nawras is planning to offer 40 per cent of its shares to the investing public through a book building process for determining the right price, probably in the second half of 2010.
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