MUSCAT, JULY 18 – Vision Insurance, currently in its tenth year of inception, has announced its offering of 25 million shares representing 25 per cent of the paid up share capital of the company to the public at a price of 162 Baisas per share aggregating to an issue size of RO 4 million.
This move comes in response to the recently promulgated Royal Decree 39/2014 and to the directives of the Capital Market Authority (CMA) requiring Omani insurance companies to change their legal status to public joint stock companies no later than August 2017. The offer price comprises a nominal value of 100 Baisas per share, share premium of 60 Baisas and offer expenses of 2 Baisas per share. The Issue was opened for public subscription on July 9 and closes on August 7.
The company had increased its paid up share capital from RO 5.50 million at December 31, 2016 to RO 10 million during 2017 by a combination of bonus shares and rights shares to existing shareholders in order to comply with the minimum capital requirement of the Royal Decree. This offer is a sale/divestment of a part of the shares currently held by the selling shareholders and the proceeds of the offer (including the premium) will accrue to the selling shareholders, the prospectus stated.
“Our mission has always been to build Vision into a model Omani financial institution that gains the stature of a preferred partner by all recognised for adherence to professionalism and transparency in all its interactions, comfort of financial strength and stability, empathy for customer expectations and sensitivities, prudence in risk selection and risk management and continuous pursuit of enhancement in operational efficiency”, Ali bin Mohamed al Lawati, founder Chairman of the company that has close to 200,000 clients including over a 1,000 corporate clients, said.
“2017 is a milestone year for Vision as going public coincides with 10 successful years of growth since the Company’s incorporation in 2007,” said PR Ramakrishnan, CEO of Vision Insurance.
He further said that the combined Oman market premium for life and non-life put together for 2016 is estimated at circa RO 470 million and is projected to grow to around RO 657 million by year 2020 as per BMI Research projections presented in the Prospectus. Vision has around 5 per cent market share presently with plans to grow this to 6 per cent by 2020.
The historic growth achieved by the Company supports these aspirations. Between 2012 and 2016, Oman market has grown at a CAGR of 6.82 per cent. Vision in the same period has grown at a CAGR of 12.5 per cent.
Ahlibank SAOG is the Issue Manager, while Dentons is the legal advisers to the company for this issue. Subscription forms to apply for this Issue can be obtained from any of the four Subscription banks — Ahlibank, Oman Arab Bank, National Bank of Oman and Bank Sohar, according to the management of Vision Insurance.