Omantel share sale gets underway

The first phase of the Omani government’s divestment of a 19% stake in Oman Telecommunications Company (Omantel) was subscribed 1.988 times, according to a statement published on the Muscat Securities Market. The initial stage comprises a private placement of 71.25 million shares open to Omani individual and institutional investors based on a book-building approach, which ended on 12 March 2014. Interested investors bid in the price range of OMR1.50 to OMR1.90 (USD3.9 to USD4.9) per share, while the cut-off price at which the placement was fully subscribed was OMR1.511 per share. Under the second phase, an initial public offering (IPO) for local citizens is expected to be launched by the end of March. Overall, the divestment will see the state’s ownership in Omantel reduced from 70% to 51%; 30% of the telco is already publicly owned.