The initial public offering (IPO) of Nawras, the Omani mobile phone operator, closed at the bottom of its price range, raising RO182m ($473m), significantly lower than the $608m it was hoping to raise.

Nawras listed 40 per cent of its shares on the Muscat Securities Market (MSM) on 15 September, making it the first company to list in the sultanate for two years.  

“The IPO raised RO182 million ($472.6m) for the selling shareholders making it, by value, the largest IPO in Oman since 2005,” read the statement issued on 27 October.

The offer price would be 720 baisas per share, it said, adding that the company would have a market capitalisation of RO456m at that price. There are 1,000 baisas per rial.

Nawras had extended the share sale period by one week until 21 October due to weak interest from retail investors. The IPO entailed the first book-building process undertaken by an Omani company.

It announced on 24 October that the IPO was fully subscribed, but its shares will now be listed on 3 November instead of 27 October as originally planned.

Nawras was previously 70 per cent owned by Omani Qatari Telecommunications Company, which is majority owned by the Qtel Group and 30 per cent owned by Omani shareholders.

Following the IPO, Qtel now owns 55 per cent, the original Omani shareholders own 5 per cent and 40 per cent will be in free float.

Nawras broke the monopoly of state-controlled Omantel when it began operations in 2005. Today, it has a 45 per cent share of the sultanate’s mobile-phone market.

Its revenues stood at RO91m for the six months ended 30 June.