Oman Reinsurance Company is planning for an initial public offering estimated to be around RO10 million within two years as it tries to abide by regulatory requirements. The company, the first and only re-insurance firm in Oman, is being obliged to go public.
To clarify the stance of the firm on the IPO, Managing Director Murthadha M. J. Ibrahim Al Jamalani said that the company began operating eight years ago with a paid-up capital of RO5 million and has been raising it by RO5 million each year before adding that the IPO will be floated in two years’ time.
Aware of the fact that competition is being geared up by international firms active in the domain, Murthadha said that Oman Reinsurance needs “to have a rating, higher capital, IT system and human resource policy. All these will help to attract big international clients and meet the vision of the country.” He is already trying to meet the vision of the country by promoting the company through several investors such as Dhofar Insurance, Oman Chamber of Commerce and Industry (OCCI), Omzest Group and the erstwhile Oman International Bank (OIB).
The insurance sector has seen favorable growth in the past ten years and the investments in developing new projects and the overall economic growth of the country are all driving demand for insurance products. Mohammed Taki Al Jamalani, Vice-President of Insurance Regulation said that Oman Reinsurance will have to offer more than RO10 million shares to comply with the 40% minimum stake dilution, if the company comes out with the IPO before the government takes a decision on the proposed reduction in minimum requirement to 25% which can be done by shareholders diluting their shares or by increasing the paid-up capital above RO30 million.
Oman: An initial public offering in less than 2 years
