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Oman's UFC plans 20pc rights issue

MUSCAT — United Finance Company (UFC), Oman's largest non-banking finance entity, has announced a 20 per cent rights issue to its shareholders to mark its 10th anniversary.

The shares will be offered at a price of 150 baisa each, which is over 20 per cent less than the current market value of the UFC script on the Muscat Securities Market, Raghavan K Murti, CEO, said at a high-profile event here on Sunday night, held as part of the anniversary celebrations.

The issue, in the ratio of one equity for every five shares held, will raise the company's equity capital to RO19.085 million from the present RO15.904 million. Murti said the amount would be used to meet working capital requirements and finance expansion plans.

UFC was set up in 1997 as a finance and leasing company. Murti highlighted the role it had played in promoting the small and medium enterprise business in the country. "UFC is driven by its mission of creating growth for all in its attempt to reach its vision of being the first choice and best finance company in Oman," he added.

Manpower Ministry Under-secretary Hamed Al Amri was the guest of honour at Sunday's ceremony, attended by senior government officials, leading businessmen and top private sector executives. A highlight was a mesmerising performance, his first in the Sultanate, by the internationally-known Indian percussionist P Sivamani.

Jamal Said Al Ojaili, the company's chairman, said with the opening of two new offices in Mawaleh and Barka, UFC's total number of branches had now reached seven. The company's new head office in Wattayeh was inaugurated on Saturday by Central Bank of Oman Executive President Hamoud bin Sangour Al Zedjali.

Ojaili also spoke about 'Al Nemu', a non-conventional product newly introduced by the company as part of the 10th anniversary celebrations. "In non-conventional financing there is no application of interest on the basis of time value of money," he explained, adding: "Instead, a mutual negotiation with the customer, a profit sharing arrangement or a mark up on the sale and purchase transaction is maintained... Thus non-conventional financing is structured to suit the way of life for the discerning customer."