The Capital Market Authority has approved the allocation ratio of the shares of Muscat City Desalination Company (MCDC) taking into consideration the biggest segment of retail investors, the Authority said in a statement. Mohammed Said al Abri, Vice- President for the Capital Market Sector at CMA, said the shares were oversubscribed 19 times, with the Authority opting to give small investors the opportunity to invest in the stock market, thereby infusing new blood into the market. The move also helps safeguard against any concentration of holdings which is a bane of most markets in the region, while also broadening the subscriber base in capital markets and share trading activities. Al Abri pointed out that allocation of the shares of Muscat City Desalination Company is based on a minimum of 1,000 shares for each of the small investors plus 3.1 per cent, and an allocation of 4.14 per cent for institutional investors. Al Abri said the huge turnout was evidence of the desire of investors to make the most of investment opportunities and to participate in the equity of big productive companies. More than RO 122 million was raised through the Initial Public Offering of MCDC, although the share offering was valued at RO 6.5 million only. He added that such results are a positive indicator of the investor confidence in the securities market and evidence of the availability of liquidity, which is key to stimulating the national economy. Muscat City Desalination Company had offered 35 per cent of the founders’ shares at RO 6.5 million in an IPO that was conducted from November 19 to December 18, 2017 at 116 baisas per share.

(LINK)