The Times of Oman has reported that Nawras, the Omani Qatari Telecommunications Company, will be offering 260 million shares through an initial public offering next month. Bank Muscat is advising Nawras on the IPO.
Although the company and its lead…
The Times of Oman has reported that Nawras, the Omani Qatari Telecommunications Company, will be offering 260 million shares through an initial public offering next month. Bank Muscat is advising Nawras on the IPO.
Although the company and its lead managers are tight-lipped on the issue size and offer price, market insiders indicated that the price range may be 700-900 baisas (US$1.80-2.33), which would include a premium of 600-800 baisa per share (US$1.55-2.07) for a 100 baisa (US$0.25) share, the Times of Oman reported.
This is roughly 9x to 12x of the company’s annualised EPS for the current year. The offer is open to both domestic and foreign investors.
The company entered Oman in 2006 to create competition for state-owned Oman Telecommunications Company, and is the Sultanate’s second operator.
Nawras is planning to reveal full details of its share offer on September 1.
The Times claims the company will IPO either in the second or third week of September.
The total size of the issue is expected to be between OR182m and OR234m (US$475m to US$600m).
Up to 70% of the IPO is reserved for private investors and will be distributed in individual tranches of 10,000 or less shares, with the remainder reserved for institutional investors.
Nawras is planning a book-building process to determine the right price for the IPO on the Muscat Securities Market. Unlike the traditional fixed price method, a price band is offered by the issuer, within which institutional investors are allowed to bid. The final price is determined by the issuer only after the closure of bidding.
