Aman REIF (under formation), the first sharia-compliant Real Estate Investment Trust (REIT) introduced in the Sultanate, has announced the launch of its IPO, commencing from Thursday, January 2, 2020 for a period of 15 days, till January 16, 2020.
This announcement was revealed during a press conference held on Tuesday, at Grand Millenium Muscat Hotel, in the presence of several Fund officials. Abdul Samad al Maskari, CEO of Thara Global Business LLC — the Financial Advisor and Investment Manager of the Fund, said that the Fund’s capital amounts to RO 20 million with 50 per cent of the fund being offered in a private offer while the other 50 per cent will be offered via a public offer of RO 10 million.
During the press conference Al Maskari stated that the fund would comprise of 200,000,000 units with 50 per cent of the units offered to Sandan as part of the proposed consideration for Sandan Development LLC selling the premises to the Fund, at an offer price of 100 Baizas per Unit. He added that the number of units offered to the public through this IPO is 100,000,000 units.
On completion of the IPO, the public ownership will stand at 100,000,000 Units with value of 100 Baizas per Unit to represent 50 per cent of the Fund’s total issued capital. The units will be offered to investors in the IPO at an offer price of 102 Baizas per Unit. Al Maskari explained that the private offer price is 100 Baizas per Unit. As for the public offer price of 102 Baizas per Unit, it comprises offer price of 100 Baizas per Unit and Offer expenses of 2 Baizas per Unit.
Al Maskari confirmed that the IPO is open to Omani and non-Omani individuals and juristic persons. He also noted that investors are divided into two categories; the first includes Omani and non-Omani individuals, who apply for 1,000 Units as a minimum, and in multiples of 100 Units thereafter up to a maximum of 10,000,000 Units.
Whereas, the second category includes Omani and non-Omani individuals and juristic persons who apply for 10,000,100 Units as a minimum, and in multiples of 100 Units thereafter up to a maximum of 20,000,000 Units.
Al Maskari added that the fund would distribute at least 90 per cent of annual net profit as dividends to the unitholders which will translate to an annual dividend yield of 7 per cent. The dividends will be paid out to unitholders semi-annually.
During the conference, Al Maskari mentioned about the promising prospects of investing in the real estate sector in Oman and generate stable and sustainable returns for the investors as well as support the government’s efforts to promote economic diversification. TO P14
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