Sohar International raises OMR 160Mn through largest domestic rights issue

by | Oct 10, 2022 | 0 comments

MUSCAT – Receiving an overwhelming response from investors, Sohar International has announced a fully subscribed rights issue of OMR 160 million. The funds raised will contribute to enhancing the bank’s capital base in order to meet the bank’s ambitious strategic growth objectives.  Sohar International issued OMR 160 million in new shares through rights issue at 0.102bz per share (0.002 bz being cost of issuance) starting on 12 September 2022. The issuance was fully subscribed with strong investor appetite across government and corporate institutions, family offices, and retail.

Commenting on Sohar International’s consistent growth trajectory, Ahmed Al Musalmi, Chief Executive Officer of Sohar International, said, “The fully subscribed rights issue is a strong testament to the bank’s capacity in attracting and raising adequate capital. This is because Sohar International has not just demonstrated utmost resilience in times of uncertainty but has remained consistent in recording exceptional performance across all its operations. Committed to acting as a catalyst for socio-economic progress and strongly aligned to Oman Vision 2040, the bank has also earned strong goodwill in the market because of its ground-breaking initiatives that have led to transformational change in the sector.”

Ahmed Al Musalmi added saying, “We are indeed grateful for the unfaltering trust our shareholders have bestowed on us. We would also like to thank the Central Bank of Oman and the Capital market Authority for their consistent support as we achieve yet another milestone in our journey. The increase in capital base will further enhance the bank’s position and help leverage market opportunities and expand horizons while contributing to the country’s progress.”

It’s worth mentioning that the bank’s Extraordinary General Meeting (EGM) held in August 2022 has approved the increase of the authorized share capital of the bank from OMR 400 million to OMR 1 billion while amending Article 5 of the Articles of Association accordingly. 

With well-defined policies and operations conducted in accordance with the predefined banking laws of the country, Sohar International ensures it adheres to international best practices. In addition, through the rights issue, the bank has also provided an impetus to capital market activities. Sohar International’s investment banking division acted as the issue manager and placement agent for the rights issue. Built on pillars of innovation, strong corporate governance, and a customer-first strategy, Sohar International has cemented its position as the preferred banking partner in the Sultanate.

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