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The BankMuscat okays GDR issue

DUBAI — The BankMuscat shareholders at an extraordinary general meeting held yesterday approved a proposal to allow the bank to increase its authorised share capital from OR75 million to OR125 million.

The bank plans to issue up to 6,878,765 Global Depository Receipts (GDRs), which represents 10 per cent of the bank's issued share capital, as on date. BankMuscat has already obtained all necessary regulatory approvals to go ahead with the proposed issue.

Depository Receipts (DRs) are created when the domestic currency shares of a company are delivered to the depository's domestic custodian bank, against which the depository bank issues DRs in US dollars. Holders of GDRs exercise the same rights as ordinary shareholders. BankMuscat is the first Omani institution to opt for the GDR option.

Shaikh AbdulMalik bin Abdullah Al Khalili, chairman, BankMuscat said: “The GDR route, we believe, will allow us to maintain the lowest possible dilution, while considerably enhancing shareholder value. This is an important step forward to us." “We believe this will result in far greater international investor interest in Oman and its economy and will also set a trend which many institutions can follow, resulting in greater inflows of foreign capital into the country," he added.

The bank has applied to the UK Listing Authority for its GDRs to be admitted to trading on the London Stock Exchange. Citigroup has been appointed as global coordinator and sole book-runner for the planned issue. HSBC has been appointed the local custodian to this issue.