Al Madina Takaful eyes IPO listing on the Muscat Securities Market - IFN

Al Madina Takaful eyes IPO listing on the Muscat Securities Market

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OMAN: Having announced its intention to convert its status into a Takaful operator in June, Al Madina Takaful will open its IPO for subscriptions from the 29th October to the 27th November. The company will float 66.6 million ordinary shares at a face value of OMR0.1 (US$0.23) each, representing 40% of its issued share capital. Al Madina seeks to list these shares on the Muscat Securities Market by mid-December. In pursuit of its conversion, the company last month rebranded itself from Al Madina Insurance Company to Al Madina Takaful. With a paid-up capital of OMR10 million (US$22.68 million) the firm is looking to increase its capital to OMR16.67 million (US$43.17 million) through the IPO. Gautam Datta, CEO of Al Madina Takaful, said: “Our existing shareholders will dilute their holdings in the company. We will look to raise another OMR6.6 million from the market that will take the company’s total capital to OMR16.67 million.” He explained that the IPO is expected to enhance Al Madina’s Takaful business as a whole in terms of customer service and products while being profitable in addressing the needs of all stakeholders. The company was established in 2006 and has progressed to command a significant market share in the Omani insurance industry. It was last assigned an insurance financial strength rating of ‘Ba2’ by Moody’s. Subject to regulatory approval from the sultanate’s Capital Market Authority next year, Al Madina Takaful will become one of the first Shariah compliant insurance services providers in Oman.