BankMuscat is launching a rights issue today to raise RO 96.7 million aimed at enhancing Tier 1 capital. The bank is offering 226.5 million shares at 0.427 baisa per share comprising a nominal value of Bzs 100, premium of Bzs 325 and issue expense of Bzs 2 per share.
The rights issue will be open from 9 July to 23 July with the record date being 2 July. Each existing shareholder as on the record date is entitled to subscribe to 1 new share for every 8 shares held by him/her. BankMuscat is the subscription bank and Gulf Baader Capital Markets is the issue manager of the rights issue.
The proceeds of the issue will be utilised by the Bank for financing growth resulting from the credit expansion following general economic growth in Oman; capitalising Islamic banking business and enhancing capital adequacy ratio to enable readiness for adoption of Basel III when introduced.
Presently, the bank’s authorised share capital stands at RO 250 million, consisting of 2,500,000,000 (Two billion five hundred million) shares. Of this, 1,812,009,497 shares have been issued and fully paid-up. Following the rights issue, the issued and paid-up capital will be 2,038,510,684 shares with a nominal value of 100 bzs each.
Eligible shareholders who do not wish to subscribe to the rights issue can trade the same. The trading of rights commenced on 8 July and ends on July 15.
Application forms for the buyers of the rights will be available at the subscription bank. Subscription shall be made by filling the form and submitting prior to the closure of subscription.
In addition to eligible shares, each shareholder as on the record date is given the option to subscribe for additional shares adding up to the maximum of the issue size. Persons who purchase the rights on MSM before the end of the trading period of rights are eligible for subscribing to the rights issue, but not for additional shares. Shareholders are required to refer to the risk factors and mitigants in the prospectus for details.
Application forms for the rights issue shall be sent to shareholders whose names appear on the MCDC list on the record date. In case the original application form is not received, or is misplaced by the applicant, the subscription bank or issue manager can issue a duplicate application form on request of the applicant, who should furnish his/her shareholder number, full name and address.
Those who are making application in the duplicate application form should not use the original application form, even if it is received/found subsequently. In case of violation of this requirement, both the applications may be rejected.
Allotment of shares is subject to valid subscription, receipt of payment of the issue price and statutory shareholding limits. The shares offered in the rights issue will be listed and traded on MSM.
BankMuscat has the highest investment grade credit rating assigned to any Omani bank of A-, A1, A- and A from all the four major rating agencies — Standard and Poor’s, Moody’s, Fitch Ratings and Capital Intelligence — respectively.
By virtue of its wide distribution network and long track record, BankMuscat has built a strong 38.03 per cent market share of total banking assets and 34.37 per cent market share of total banking credit in Oman as on March 31, 2012. The experience and depth of the bank’s management team has been a key factor in achieving and maintaining leadership position in the Omani banking market.