BankMuscat Rights issue

BankMuscat Rights issue

Bank Muscat, the flagship financial services provider in the Sultanate, has successfully completed its Rights issue.

The subscription ran from 9 July to 22 July, 2012, resulting in a subscription of shares amounting to RO 123,312,407.680. The issue was oversubscribed and 1675 applications were received for a total subscription of 288,787,840 shares as against the rights offer for 226,501,187 shares.

Existing shareholders including the persons who have purchased rights from the MSM subscribed to 221,182,742 shares. As per the subscription conditions and procedure mentioned in the prospectus, 100% allotment will be made to those subscribers who have applied to the extent of their rights.

The total number of additional shares applied for was 67,605,098 shares. The balance of shares after 100% allotment was 5,318,445 shares. The balance shares have been allotted against eligible applications for a total of 67,169,709 shares resulting in an allotment of 7.918% for additional shares.

Bank Muscat aimed to raise RO 96.7 million to enhance Tier 1 capital. The Bank offered 226.5 million shares at 0.427 baisa per share, comprising a nominal value of Bzs 100, premium value of Bzs 325 and issue expense value of Bzs 2 per share. The subscription for the issue was 1.275 times higher in terms of the actual number of shares

The proceeds of the issue will be utilised by the Bank for: financing growth resulting from the credit expansion and following general economic growth in Oman; capitalising the 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.