OQIC, a premier insurer in Oman, is offering 25 million offer shares at an offer price of 160 baisa per offer share, (comprising a nominal value of Bzs 100 per offer share, premium of Bzs 58 per offer share and offer expenses of Bzs 2 per offer share).

Following the IPO, the company expects to generate a five-year average dividend yield of 10 per cent. This compares favourably with the average dividend yield of eight per cent for the insurance companies currently listed on the Muscat Securities Market.

OQIC expects to pay its first dividend following the IPO in April 2018. The IPO is priced at a discount of about 14 per cent (P/B) to national peers.

OQIC, a premier insurer in Oman, recently hosted an investor roadshow in Muscat that attracted attendees from a broad range of investor groups, including institutional investors, high-net worth individuals, established family businesses, and investment analysts from brokerage houses.

The senior management team of OQIC and its parent QIC Group interacted with the attendees and received an overwhelming response. Plans are in place for holding a similar roadshow event in Salalah.

Commenting on the event, Ali Al Fadala, the senior deputy group president and chief executive of QIC Group, said: "OQIC has been playing a leading role in the insurance sector in Oman and brings with it strong credentials and the backing of its parent, QIC, which is the largest insurance group in the region."

"A number of reasons make this a highly compelling investment opportunity – such as the experienced founders having an insurance industry track record of over 50 years. In addition to that QIC’s exemplary performance, well-defined growth strategy, prudent investment management and operational excellence make the offering attractive,' noted Al Fadala.

"OQIC with its highly diversified set of distribution channels in Oman, including digital, branches and bancassurance, along with its focus on select set of profitable segments differentiates the Company from the other participants in the Omani insurance industry," he added.

OQIC chief executive Navin Kumar said: "We are extremely pleased with the strong interest and enthusiasm around the IPO, which is a reflection of the fundamental strength of our company and its compelling investment case."

Application forms for the IPO are available at all branches of Bank Dhofar, National Bank of Oman and Oman Arab Bank. The IPO subscription period will close on October 5.-TradeArabia News Service