Oman may lower IPO float size to 25%, CMA says

New law aims at encouraging family firms to list; companies required to list 40% currently
Oman may lower IPO float size to 25%, CMA says
NEW PLAN: Oman may revise a law that would allow companies to float just 25 percent of their capital from 40 percent now to prompt more family firms to list, a Capital Markets Authority (CMA) official said (Getty Images)
By Reuters
Tue 03 May 2011 12:20 PM

Oman may revise a law that would allow companies to float just 25 percent of their capital from 40 percent now to prompt more family firms to list, a Capital Markets Authority (CMA) official said on Tuesday.

"We are considering to reduce IPO issues to 25 percent from 40 percent to encourage family businesses to convert to listed companies," Yahya Al Jabri, CMA executive president, said.

Oman Arab Bank, which is 51-percent-owned by Ominvest, is the latest Omani firm to indicate it will seek a listing, according to a local newspaper report.

Ominvest shares rallied to a two-year high on the news on Monday before shedding gains in Tuesday's session.

Ominvest said in a statement on Tuesday that shareholders of Oman Arab Bank, Ominvest and Bahrain's Arab Bank, which owns the rest of OAB, would meet shortly to discuss the possible listing.

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