Largest Rights Issue on Muscat Stock Exchange
Sohar International, a leading bank in Oman, successfully raised 130 million Omani rials ($336.7 million) through its rights issue, making it the largest issuance of 2024 on the Muscat Stock Exchange (MSX). The bank aims to utilize the funds to accelerate growth, enhance its offerings, and support strategic initiatives.
Successful Fundraising Campaign
Launched in November 2024, the rights issue witnessed robust participation from government entities, private institutions, family offices, and individual investors. The allotted rights were officially listed on the Muscat Stock Exchange on December 2, 2024, further solidifying the bank’s standing in Oman’s financial market.
Fitch Ratings Upgrade
In a significant boost to Sohar International’s reputation, Fitch Ratings revised the bank’s outlook to “positive” from “stable”, while maintaining its long-term issuer default rating at “BB”. This upgrade reflects:
- Enhanced business profile following its 2023 merger with HSBC Bank Oman SAOG
- Expanded deposit franchise, allowing greater liquidity and operational efficiency
- Stabilizing asset quality and adequate capitalisation, positioning the bank for sustained growth
Strategic Plans
The funds raised through the rights issue will be allocated to:
- Funding growth initiatives across key sectors
- Expanding the bank’s portfolio of products and services
- Supporting innovation and technology-driven banking solutions
Fitch Ratings stated:
“The bank has demonstrated notable improvement in its operational framework and asset quality, which underpins its positive outlook.”
Sohar International’s record-breaking rights issue on the MSX is a testament to investor confidence in its growth trajectory. With enhanced financial stability, strategic planning, and Fitch’s positive outlook, the bank is well-positioned to drive innovation and deliver value to its stakeholders in 2025 and beyond.
