Tuesday, July 26, 2005

Hats off

Hats off to H.E. Yahya Al Jabri, president of the Capital Market Authority for not yielding to pressure from big shot millionaires who tried to influence the share allocation of Omantel's IPO. The CMA announced today that the allocation will be set at 2850 shares. Therefore anyone who's applied for any amount upto 2850 will get all what he requested. As a result 147,000 applicants will get their full allocation. That's an amazing 91% of subscribers.

Trading will begin this Thursday, July 28 and the share will be allowed to float for 5 days before the price is fixed within the 10% daily limit. Some of us will have to scramble to register brokerage accounts in time for Thursday's trading in case the price jump is higher than expected on the first day of trading. With the big investors locked-out and receiving huge refunds of tens of millions there will be a lot of money available for the buyers.

I hope people use their profit wisely.