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CMA approves subscription results of Oman REIT IPO

20 Feb 2021

The Capital Market Authority (CMA) on Thursday approved the results of the subscription of Oman REIT Fund’s initial public offering (IPO). The subscription period for Oman REIT Fund’s IPO closed on February 9.

As per a statement issued by the CMA, 49,943,500 units of Oman REIT Fund were subscribed by investors with a total value of RO5mn out of total 261,943,500 units offered for the subscription. The CMA consented to allocate the units at 100 per cent.

Managed by Shumookh Fund Management LLC, Oman REIT Fund offered 40 per cent or RO26mn of its RO65mn capital at an issue price of 120bz (comprising 100bz per unit and 2bz issue expense).

The real estate portfolio of Oman REIT Fund comprises 20 properties including residential and commercial units, offices and logistics services scattered throughout the sultanate. As per the IPO prospectus, the assets converted into investment units in the fund are income-generating assets. 

The real estate investment trust (REIT) funds provide several investment options for investors allowing the companies and individuals to invest in properties through holding investment units in the fund. In Oman, REIT funds permit foreign investors to own investment units in the fund and help attract foreign capital to national economy.

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