Oman’s Al Madina Insurance Co to float IPO

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Oman’s Al Madina Insurance Company  is set to float 66.7m shares in an initial public offering aimed at chieving Sharia-compliant status on the Sultante’s takaful system, it was reported.

Under Oman’s takaful regulations, insurance firms must be publicly listed to operate as takaful companies.

The company has already submitted a draft prospectus with the Capital Market Authority (CMA) and a final prospectus will be submitted soon, the Times of Oman newspaper reported.

The face value of the share will be 100 baisas ($0.27). The company, which has a paid up capital of OMR10m ($26m) will increase it to OMR16.67m ($43.3) through the share offer.

Eng Abdulrahman Awadh Barham, deputy chairman of Al Madina Insurance was quoted as saying that the offer would be 40 percent of the company's capital. He described it as a premium issue.

The Al Madina issue will be the third IPO in Oman this year after Sharquiya Desalination and Sembcorp Power.

Eng Barham said since the company is established and was a profit-making firm, making the issue attractive for investors.

Normally, takaful insurance firms do not make profit in the initial years. "We have gone through that period. We expect the takaful business of Al Madina to do very well,” he said.

It is compulsory for Islamic banks and window operations to insure their products only with takaful firms, though a lack of options meant companies were generally given a grace period.

"We do business with some of the Islamic banks and hope to expand our services to the entire market,” Eng Barham told the Times.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Little-known investor poised to score big with Twitter IPO

Little-known investor poised to score big with Twitter IPO

New Yorker Suhail Rizvi has quietly amassed a $1bn 15% stake...

Mark Zuckerberg: A billionaire's life

Mark Zuckerberg: A billionaire's life

Arabian Business takes a closer look at the growth of a New Media...

1
Is Facebook really worth $100bn?

Is Facebook really worth $100bn?

The time has finally come for the internet’s biggest phenomenon...

2
Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams