Al Madina Insurance plans IPO to convert itself into takaful firm

Al Madina Insurance Company is planning to float an initial public offering (IPO) in the fourth quarter of this year in an attempt to change its status to a Sharia-compliant takaful firm. As per the draft takaful regulation, insurance companies have to be public firms to function as takaful companies. The promoters will reportedly divest 40 per cent of their holding in the company in favour of investing public through the IPO, which will be a premium issue. Al Madina Insurance, which has branch operations in several parts of the country, has a capital base of OMR10 million. Besides, three other companies made similar proposals: Al Maha Ceramics, Sembcorp Salalah Power and Oman Arab Bank. Al Madina has received an ‘in principle’ approval from the Capital Market Authority for converting its status into an Islamic insurance firm and a final approval will be given only after the company lists its shares on the Muscat Securities Market (MSM).

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