The Capital Market Authority (CMA) has given its approval for the initial public offering (IPO) of Oman’s second and biggest real estate investment trust (REIT) fund.
Oman REIT Fund will offer RO26mn worth of units to the public in an IPO that will be opened for subscription for 15 days from January 17 till January 31, 2020, according to a statement issued by the market regulator.
‘The Capital Market Authority has approved the prospectus of Oman REIT Fund pursuant to the Regulation for Real Estate Investment Funds and as part of economic diversification initiative Tanfeedh,’ the CMA statement said.
As per the new fund’s IPO prospectus, Oman REIT Fund will offer 261mn units for public subscription which represents 40 per cent of the total issued capital of the fund at RO65mn. It added that there is a potential for increasing the public offer percentage to 60 per cent of the total issued capital of the fund.
The prospectus indicates that the issue price is 102bz per unit comprising 100bz as unit value plus 2bz towards issue expenses.
The properties portfolio of the offered units of Oman REIT Fund comprises 20 properties including residential, commercial, retail shops and logistics services across the sultanate. The fund’s IPO prospectus stated that the assets converted into investment units are income generating.
Oman REIT Fund’s initial public offering would be the largest REIT IPO in the sultanate since the CMA issued regulations for the listing of real estate investment funds in 2018.
Aman Real Estate Investment Fund (Aman REIF), which started trading on the Muscat Securities Market (MSM) in March this year, was the first real estate investment trust established in Oman. Earlier in January 2020, Aman REIF had launched its RO10mn worth of initial public offering.
Through the IPO, Aman REIF offered its 100mn units (50 per cent of the fund’s total issued capital) for public subscription with a value of 100bz per unit. The IPO was open to Omani and non-Omani individuals and juristic persons.
The REIT funds provide options for investors to invest in real estate and own investment units. In addition, REIT funds also allow foreign investor to own investment units in the fund and attract foreign capital.