Asyad Shipping sets price range for RO128mn IPO
Muscat – Asyad Shipping, a subsidiary of Asyad Group, has announced the price range for its highly anticipated initial public offering (IPO), which is set to open for public subscription on Thursday. The offering, expected to raise up to RO128.1mn at the top end of the price range, will value the company at up to RO640.7mn.
The IPO will consist of 1,041,748,856 existing shares being sold by Asyad Group, representing 20% of Asyad Shipping's total issued share capital. Post-offering, Asyad Group will remain the majority shareholder.
The offering is split into two categories: A Category I institutional offer (representing 75% of the total offer size) and a Category II retail offer (representing the remaining 25%). The Category I offer includes a significant 30% of the offering allocated to Anchor Investors.
A total of 468,786,985 offer shares (45% of the total shares on offer) will be allocated to institutional investors in the Category I offer, which will be open to local, regional, and international applicants. The minimum subscription for Category I investors is 100,000 shares, with additional subscriptions in multiples of 100 shares thereafter.
The Category II retail offer will be allocated 260,437,214 shares (25% of the total offering). Subscriptions will be made on a proportionate basis. The Category II allocation is split between large retail investors and small retail investors, with the minimum subscription for large investors set at 81,400 shares. There is no maximum limit for Category II large retail investors, while small retail investors can subscribe for a minimum of 100 shares, with a maximum limit of 81,300 shares.
The subscription price for the Category I offer is expected to fall between 117bz and 123bz per share, with the final price determined through a book-building process. The Category II offer will have a fixed subscription price of 123bz per share.
The IPO subscription opens on February 20, 2025. The Category I offer will close on February 27, 2025, and the Category II offer will close on February 26, 2025.
Anchor investors
Asyad Shipping has secured firm commitments from two strategic anchor investors – Mars Development and Investment, an Oman-based firm, and Falcon Investments, a subsidiary of the Qatar Investment Authority. Together, the two investors have committed to subscribing to 30% of the total offer, with Mars Development and Investment agreeing to take up 10% and Falcon Investments 20%, at the offer price of 123bz per share.
The commitments by the two anchor investors demonstrate a substantial vote of confidence in Asyad Shipping's value proposition, track record, and strategic vision.
Shares of Asyad Shipping are expected to begin trading on the Muscat Stock Exchange (MSX) on or around March 12, 2025, subject to receiving all necessary regulatory approvals.
Sohar International Bank has been appointed as the issue manager, with Oman Investment Bank, Sohar International Bank, EFG Hermes, Jefferies, and JP Morgan acting as joint global coordinators. Crédit Agricole Corporate and Investment Bank and Société Générale have been appointed as joint bookrunners.
Dividend policy
Asyad Shipping has outlined an attractive dividend policy, with an expectation of strong cash flows and long-term earnings growth. Prior to the IPO, the company has declared a dividend of RO9.9mn, payable in February 2025 to pre-IPO shareholders.
Post-IPO, the company plans to pay dividends of RO22.3mn in March 2025 and RO29mn in September 2025, based on its financial performance for the year ending December 31, 2024, and for the six-month period ending June 30, 2025, respectively. A further dividend of RO29mn is expected in March 2026, based on the performance for the year ending December 31, 2025.
Looking ahead, for the year 2026, Asyad Shipping aims to distribute a fixed annual dividend of RO58mn, with 50% payable in September 2026 and the remaining 50% in March 2027.
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