CMA announced the approval of Al Maha SAOG allocation that follows a policy considering the largest segment of subscribers represented by junior investors. This was announced in a press release by Ahmed Al Qasabi, Acting Director of Issues and Disclosure of CMA who clarified that the subscription volume exceeded the offered shares’ size for 20 times, thus CMA considered allotting good amount for junior subscribers in order to provide investment opportunities in MSM for new investors, and to restrict ownership centralizing that most markets in the region suffer of. This will of course expand the participation base in the capital markets and in trading in shares by increasing the number of investors in the market.
Al Qasabi pointed that the allocation results in Al Maha SAOG is based on allotting the minimum for junior shareholders for 200 shares, and distributing 3% for each subscriber, and allotting about 4% for each subscriber of the other category represented by senior investors.
Al Qasabi talked about the big size of subscription; “subscription results showed that the demand value reached about OMR 155 million, while the value of shares offered for subscription was OMR 7.9 million, and subscribers number reached about 35 thousand investors”.
He added, “These results positively indicate the trust of investors in the securities market. We confirm once again that there is a cash flow which should be used in activating the national economy, and invest it in big productive projects that would provide job opportunities for large number of youth”.
Al Qasabi concluded by confirming that CMA encourages all shareholders to focus on long-term investment, and to not to adopt the method of quick take off especially if the issuer will place subscribed amounts in investment activities that would affect the national economy’s movement and achieve remarkable return.
It is worth to mention that Al Maha Ceramics sold about 35% of founders’ shares of about OMR 7.9 million through public subscription in the period from 15th September to 16th October, 2014.