The Oman Financial Services Authority (FSA) has recently approved the results of the secondary share allocation of Asiad Transport Company. This offering included 335,312,913 shares, which constitutes 6.44 percent of the company's registered capital, with each share priced at 195 baisa.
Details of Share Allocation to Institutional Investors
In the first allocation phase, 260,437,214 ordinary shares were allocated to institutional investors, equivalent to 5 percent of the company's registered capital. These shares were offered through a private process using an accelerated book-building method to selected institutional investors.
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High Demand in the Retail Sector
In the retail sector, total demand reached 194,293,900 shares, and total payments amounted to 37,887,310.5 Omani rials through 11,205 subscription requests. Before the increase in the offering size, this sector had nearly three times coverage. Due to strong demand, the retail sector increased by 15 percent, rising from 65,109,304 shares to 74,875,699 shares, which corresponds to approximately 1.44 percent of the company's capital. After this increase, the subscription coverage reached nearly 2.6 times.
Share Allocation to Retail Investors
The Oman Financial Services Authority confirmed a minimum allocation of 4,000 shares for each subscriber in the small retail investor group. The remaining shares were allocated based on the ratio of requests received from subscribers, which includes approximately 19.4 percent of the remaining shares. In the large retail investor group, share allocation was done in proportion to total requests, which includes approximately 30.8 percent of the total shares requested.
Implications of the Approval of Results
The approval of the share allocation results paves the way for completing the processes related to subscribers and listing on the Muscat Securities Market. This action will be coordinated with the Muscat Clearing and Depository and the Muscat Securities Market. The success of this secondary offering not only reflects market confidence in Asiad Transport Company but can also help attract new capital and strengthen the financial position of the company.
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