CMA announce allocation of Phoenix shares
The Capital Market Authority has announced of the allocation ratio for the shares of Phoenix Power Company taking into account the largest segments of subscribers represented by small investors at a minimum of 3,000 shares for each subscriber plus 8.57% of the subscribed shares, and 2.52% of the subscribed shares for each institutional subscriber .
This was announced by Sayyid Hamid Sultan Al Busaidy, Acting Executive President of CMA who said the size of subscription of the two company’s shares has exceeded 18 times the offered shares , hence CMA considered allocation of shares taking into consideration the small investors to provide investment opportunity in MSM for new segment of investors and to reduce concentration in holdings which is suffered by most stock markets in the region. He added the approach would widen the participation base in the stock market and trading in shares.
Al Busaidy pointed out that allocation of the shares of Phoenix Power was on the basis of allocation of the minimum limit for small investors at 3,000 shares and allocation ratio of 8.57% for each subscriber, and allocation of 2.52% for the segment of institutional investors.
Al Budaidy describe the huge turnout which exceeded 18 times the offered shares at more than RO 1 billion as a positive indicator on the desire and confidence of investors to avail the investment in the stock market further to benefiting from the liquidity in activating the economy which would provide jobs for the youth in addition to the other economic and social benefits
Al Busaidy concluded that CMA encourages all investors to focus on long term investments instead of adopting rapid exit policy so as to achieve higher benefits when the issuer invest the funds in investment activities which have impact on the national economy.
The prospectus provides allocation in the event of over subscription will be on pro rata basis at 656% of the offered shares for the first category of small investors at 332,741,832 shares and 35% of the offered shares for the second category of institutional investors at 179,168,679 shares. It also provides that refunding of excess amounts and sending allocation letters will take place on 21 June. The shares will be listed on the MSM on 22 June.