MSX seeks to absorb OIA’s exits, works on dual listing with Tadawul: CEO

Haitham Al Salmi, CEO, MSX

Oman Investment Authority (OIA) plans to exit at least 30 firms out the of 160 government companies that it manages and Muscat Stock Exchange (MSX) aims to be the first channel to absorb the largest number of government listings, Haitham Al Salmi, CEO of MSX, told Argaam.

MSX expects a new listing, either in the third or fourth quarter of 2023, which would be four times the size of the last listing, Al Salmi added on the sidelines of the Arab Federation of Capital Markets Conference in Muscat.

The Saudi market has the necessary liquidity requirements. Having signed an agreement with the Saudi Exchange (Tadawul), MSX is marketing dual listing to Saudi and Omani firms as both markets have the desired infrastructure.

MSX held roadshows for dual listing with some companies, hoping that a dual listing of one or two companies will be finalized this year.

Al Salmi added that MSX seeks to upgrade to an emerging market to attract huge capital and join global indices to realize the five-year plan.

To join global market indices, three large companies should be listed on the market. After Abraj Energy Services listed shares, an initial public offering (IPO) is in the pipeline with another company that is in the process of merger to fulfill requirements.

The market capitalization of MSX reached OMR 32 billion at the end of 2022. The listed securities include public joint-stock companies, bonds, sukuk and debt instruments, in addition to other companies listed on the Parallel Market.

MSX is a frontier market and prices are not inflated, which in turn lures investors. Further, dividend yields surpass 6%, compared to nearly 4% in emerging markets.

Transition from a frontier to an emerging market status will reflect on trading volumes that may double and push prices to 40% or more. Investment at this stage will mark a leap in the market, Al Salmi added.