Oman's Ominvest won't proceed with Oman Arab Bank IPO
LONDON, Feb 26 (IFR) - Oman International Development and Investment Co (Ominvest) has decided not to go ahead with the proposed initial public offer of subsidiary Oman Arab Bank, just two weeks after announcing it was looking into the feasibility of the transaction.
"Based on thorough studies carried out by international financial institutions specialised in this field engaged by Ominvest for this purpose, Ominvest Board is of the view that is not in the best interest of Ominvest's shareholders to proceed with this proposal at the present time," the company said.
Current valuations on the Muscat Securities Exchange put the company off the idea, a source said.
"If you look at where (Omani) blue chips are trading, it is pretty cheap, so it was decided an IPO is not the best option for shareholders," he said.
He did not rule out reviving the transaction at a future date.
At the time the company said: "(Ominvest) shall make its best endeavours to inform the capital markets authority, within six months hereof, on its full plan regarding the (IPO) project." (Reporting by Abhinav Ramnarayan)