MUSCAT, 11 May 2005 — The Gulf sultanate of Oman has put off until early June the partial privatization of its telecom service provider, which had been scheduled for May 24, reports said yesterday.
The sale by the Finance Ministry of 30 percent of the equity capital in Omantel will now open in the first week of June, with the exact date to be announced “shortly”, the state-run Oman Daily Observer said.
The initial public offering of 225 million shares is expected to raise some $760 million at the projected offer price of around $3.3 per share. The paper said subscriptions would be restricted to Omani nationals, who will be allocated 21 percent of the company’s shares, while the remaining nine percent has been reserved for pension funds and charities. “A number of investors have started liquidating their shares (on the stock market) as they want funds for applying to the Omantel issue, the largest in Oman’s history,” it added.
“Omantel is recognizing customer needs and market demand. And no doubt, the IPO will receive overwhelming response from middle-class and cash-rich individuals”, said the daily, quoting market analysts.” Omantel scrip is a goldmine.”
Omantel was created in August 1999 to replace the government-controlled General Telecommunications Organization.
