Oman’s Asyad Shipping has priced its IPO at OR0.117–OR0.123, raising OR128.1 million. The valuation stands at OR640.7 million, reflecting strong local investor interest amidst caution from international accounts. A 9% dividend yield, rising to 12.5% with an additional payment, positions Asyad favorably in a challenging market. The IPO’s stabilisation measures and extensive local outreach indicate potential for long-term success.
Asyad Shipping in Oman has successfully priced its Initial Public Offering (IPO) at OR0.117–OR0.123, culminating in a substantial total of OR128.1 million (approximately US$332.8 million). This pricing, which evaluates the company at OR640.7 million, is based on a 20% free-float of 1.04 billion shares. Local investors played a pivotal role in this pricing strategy, exhibiting a cautious approach largely influenced by the recent unfavorable performances of Middle East stocks.
The offering presents a dividend yield of 9%, which can increase to 12.5% with an additional payment for the fiscal year of 2024. This yield positions Asyad at a lower valuation compared to previous spin-offs by the state oil company, OQ, which traded between 8.1% and 11.9% at the time of Asyad’s market entry. Concerns regarding Oman’s market performance and investor exposure due to previous listings have contributed to a more cautious sentiment among investors.
Asyad’s listing marks a significant venture, being the first instance of market stabilisation in Oman, with Ubhar Capital appointed as the stabilisation manager holding a OR10 million brownshoe. Initial investor responses included a blend of local demand and international interest, particularly from hedge funds, but with lower-than-anticipated engagement from Saudi markets despite the sharia-compliant structure of the offer.
Institutions are set to receive 45% of the shares while retail investors will secure 25%. Notable anchors include the Qatar Investment Authority’s Falcon Investments and Mars Development and Investment, both government-owned entities, constituting 30% of the allocation. Roadshows were executed across seven governorates culminating at the Muscat Stock Exchange, providing extensive outreach prior to the expected share trading commencement on March 12.
In summary, Asyad Shipping’s IPO reflects a strong local investor initiative amidst cautious international sentiment due to prior market performances. The appointment of Ubhar Capital for stabilisation showcases a pivotal step for Omani markets, ensuring investor reassurance. Asyad’s focused strategy aims at overcoming market hesitance, reinforced by targeted allocations and management roadshows, fostering a sentiment for future success in Oman’s financial landscape.
Original Source: www.zawya.com
