The Pearl Real Estate Investment Fund (The Pearl REIF), Oman’s largest Sharia complaints fund, has announced the opening of its first public offering (IPO). The subscription is open from October 16 to October 30, 2022.
The Oman Investment Authority (OIA) and its subsidiary Omantel are the promoters of The Pearl REIF. Sohar International is the investment manager and also the issue manager for the IPO.
The fund’s promoters will sell 49% of their stake through the IPO. Accordingly, the Fund is offering 208,137,400 Offering Units for subscription at a price of 112 Baiza per Offering Unit (including the Offering Price of 110 Baiza and the Offering Cost of 2 Baiza per Offering Unit).
Pearl REIF’s IPO is a unique opportunity for ordinary investors to benefit from income-generating real estate investments. Historically, the size and scope of such investments only appealed to large investors. However, normal investors have the same chance with The Pearl REIF.
Mr. Wahbi Sulaiman Al Riyami, Chairman of The Pearl REIF (representing Omantel) highlighted the offering saying, “The Pearl REIF is a compelling and rare opportunity for investors considering real estate to diversify their portfolios. The strong promoters and permanent tenants of these properties will demonstrate the strength of the offer. I am confident that retail investors will be positive about the potential of this offering.”
To begin with, The Pearl REIF has two flagship tenants: Omantel and Lulu Group. Omantel has already confirmed a definitive agreement with The Pearl REIF to sell and lease back its iconic main building in Madinat Al Irfan. Lulu Hypermarket Salalah also has a long-term lease on the property.
Aown Abbas Al Bahrani, Deputy Chairman of Pearl REIF and Director of Public Markets at OIA, said: “Pearl REIF’s IPO is underpinned by the strength of the experience and expertise of the fund’s governing body, investment manager and underwriters. We are confident that public investors will seize this unique opportunity.”
The Pearl REIF has projected an average distributable earnings yield of 9.2%, which compares favorably to other yield instruments in Oman such as term deposits, perpetual bonds or sukuk.
The Pearl REIF has appointed a collection consortium consisting of banks and well-known brokerage firms that would accept IPO application forms electronically. All applicants must have an account and investor number with Muscat Clearing & Depository (MCD). Any applicant can apply to obtain an investor number and open an account by completing the MCD application forms. This is available from MCD or its website at www.mcd.gov.om or from brokerage firms licensed by the CMA.
Additional information on The Pearl REIF’s IPO, including the prospectus, investor information brochure and other details of the fund’s objectives, strategies and governing body, is available on the website at www.pearlreif.com.
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Disclaimer
“This does not constitute an offer to sell or a solicitation by or on behalf of the Issuer to subscribe for Shares in any jurisdiction outside of Oman where such distribution is or may be unlawful.”
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