CMA approved yesterday morning the prospectus of the first Takaful company in the Sultanate which is Al Madina Insurance Company through public offering. The payable capital is 16.67 million Riyals divided to 166.67 million shares. About 66.67 million shares will be offered for public subscription at a price of 140 Baisa per share.
It is expected that the subscription date will be on Tuesday 29th October, 2013 and will continue for 30 days. The prospectus points to the minimum limit of the subscribed shared per application will be 1000 shares then multiples of 100 for small investors, and 100100 shares and then multiples of number 100 for big investors, while the maximum limit for the first category will be 100000 shares and 6.67 million shares for the second equivalent to 10% of the total offered shares.
The prospectus also clarified the allocation mechanism approved in case the subscribed shares exceeded the number of offered shares for public subscription. The small investors’ share will be 65% of the offered shares for public subscription representing 43.33 million shares, while the allocated share for big investors will be 35% representing 23.33 million shares. The share of each category will be allocated according to the ratio and proportion methodology comparing to the number of the subscribed shares.
It is worth to mention that CMA has presented in several occasions its general direction for the basic requirements of licensing and regulating Takaful products inside the Sultanate. These requirements are represented in; 1. The company’s capital shall not be lesser than 10 million Riyals, 2. The company shall be a public stock company, 3. Obtaining a technical and professional team in the Takaful field and forming Sharia’a team to ensure the soundness of the company’s transactions. Moreover, CMA clarified the adopted direction related to the dependency of Takaful products which is to consider the Takaful company independent or to be following a commercial insurance company, as no Takaful windows will be licensed in order to promote the trust in these products and to ensure their integrity as per Sharia’a instructions.