Muscat Stock Exchange to launch new secondary market: CEO

Haitham Al Salmi, CEO, Muscat Stock Exchange

The Muscat Stock Exchange (MSX) is in the process of launching a new secondary financial market that will provide substantial incentives to companies keen on getting listed, CEO Haitham Al Salmi revealed.

There will be unique benefits for entities already listed on the primary market, he said, adding that details of the new market will be disclosed shortly.

In an interview with Argaam at the 2024 annual conference of the Arab Federation of Capital Markets (AFCM) in Doha, Al Salmi highlighted the distinction of the Muscat Stock Exchange from other regional markets by accommodating both public and closed joint-stock companies.

Approximately 300 closed joint-stock companies listed on the MSX, amounting to a total value of around OMR 11 billion based on nominal value.

For more exclusive interviews

The CEO emphasized that the objective of the new market is to streamline the trading of shares for these companies and attract offerings from small and medium-sized enterprises (SMEs). He mentioned collaborative efforts were ongoing with relevant government entities to lower the minimum threshold to OMR 0.5 million or more for closed companies, aimed at attracting SMEs.

Al Salmi highlighted a series of developmental initiatives undertaken by the stock exchange in recent years, commencing with a clear strategy in 2021 that was executed in the subsequent year, with the goal of elevating the MSX to emerging markets status.

He also emphasized the successful cooperation with the government in boosting foreign investments, with all restrictions on foreign investment being lifted, allowing for 100% foreign ownership of all listed companies.

Furthermore, efforts were made to enhance trading mechanisms, such as removing and reducing price limits to facilitate negotiations between buyers and sellers.  Al Salmi mentioned initiatives related to subscriptions, such as the delivery versus payment project.

In the past year, the MSX witnessed a 22% increase in trading volumes, totaling OMR 1.1 billion, with 20% of investments coming from foreign sources. With the influx of new companies and investors, the barrier of half a million investors was surpassed, with nearly 199,000 added during the past year.

Al Salmi said the MSX and the Omani Investment Authority, the primary owner of most government companies, completed the process for two public offerings, which is expected to be launched.

He added that they are working on three other IPO applications in the current year, which cover new sectors such as logistics, gas, and energy distribution.