Muscat – Investor interest is increasing as the subscription to the Initial Public Offering (IPO) of the Pearl Real Estate Investment Fund (REIF) begins.
The Fund’s Investment Manager and Issuance Manager, Sohar International Bank, has held several meetings with key investors to highlight the unique investment opportunity of investing in Oman’s largest Shariah-compliant fund.
According to a press release, the meetings were well attended by a broad cross-section of investor groups, including institutional investors, high net worth individuals and established family offices.
The Oman Investment Authority (OIA) and its subsidiary Omantel are the promoters of The Pearl REIF.
Highlighting the positive response, Wahbi al Riyami, Chairman of The Pearl REIF (Omantel’s representative), said, “The organizers of The Pearl REIF have made every effort to bring the investment opportunity to more investors, and in particular, wider participation of the Retail attracted segment. The pricing of the IPO has been structured to offer the common investor the opportunity to invest in a well-structured vehicle with strong underlying assets and robust long-term covenants. I am pleased with the great interest shown by investors and I am confident that they will subscribe to the issue.”
Further explaining the strength of the offering, Aown Abbas al Bahrani, Vice Chairman of The Pearl REIF and Director of Public Markets at OIA, said: “The strong interest from the investor community reflects the main highlights of the offering, being the largest fund of its kind in Oman , permanent tenants, stable cash flow transparency and the support of promoters who will continue to be shareholders in the fund.”
The Pearl REIF is offering 208,137,400 offering units for subscription at a price of bz 112 per offering unit (including an offering cost of bz 2 per offering unit).
The Pearl REIF has forecast an average distributable earnings yield of 9.2 percent, which compares favorably to other yield instruments in Oman such as term deposits, perpetual bonds or sukuk.
Investors can submit their subscription application for the IPO before October 30, 2022 through the electronic channels of any of the collection agencies: Sohar International Bank, Ahlibank, Bank Muscat, NBO, U-Capital and United Securities.
All applicants must have an account and investor number with the Muscat Clearing & Depository Company (MCD). Any applicant can apply to obtain an investor number and open an account by completing the MCD application forms.
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