The initial public offering (IPO) of Aman Real Estate Investment Fund (Aman REIF), which opened for public subscription on January 2, is seeing strong demand from both individual and institutional investors. The Capital Market Authority has approved the extension of the IPO to February 2.
Abdul Samad al Maskari, CEO of Thara Global Business LLC and financial advisor and investment manager of Aman REIF, expressed his happiness with the strong investor response for the IPO. In a press statement, Maskari said that the company has been receiving – through various channels – many inquiries about how to invest in the fund and what are the desired returns from such an investment.
“The awareness of the Omani investors has grown significantly over the past years, with many investors well aware of the importance of investing in the stock market rather than traditional investments, which have become subject to many variables,” Maskari said.
He also added that offering the fund for IPO contributes to the expansion of the public ownership of the fund and supports the aspirations of investors to participate in the ownership of projects and obtain rewarding returns that develop their savings. “Investment in the promising real estate sector in the sultanate supports the efforts to promote economic diversification led by the government and contributes to the development of both national and foreign capital.”
The number of units offered to the public through this IPO is 100mn units with a value of 100bz per unit, representing 50 per cent of the fund’s intended total issued capital. It will be offered to investors at an offer price of 102bz per unit. The units representing the other 50 per cent of the fund’s total issued capital are offered to Sandan Development as part of the proposed consideration for Sandan Development LLC selling the premises to Aman REIF, at an offer price of 100bz per unit.
The IPO is open to Omani and non-Omani individuals and juristic persons. Investors are classified 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 10mn 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 20mn units.
The objective of Aman REIF’s IPO is to provide an opportunity to invest in a real estate sector, which will also provide recurring income through rental income and capital growth on the back of growth in the industrial sector in the sultanate.