FSA Launches eIPO Platform to Speed Up Securities Issuance in Oman

As part of its efforts to digitise services and streamline procedures regulating the Omani capital market, the Financial Services Authority (FSA) has launched the first phase of the electronic securities issuance system (eIPO). This new system aims to enhance efficiency and expedite transactions between the FSA and relevant entities.

The eIPO platform, an integrated digital solution, is designed to regulate the primary market issuance and listing processes in the Omani capital market, fostering an electronic environment that improves transparency and accelerates operations, the FSA said in a statement.

The system was developed in collaboration with the National Program for Financial Sustainability and Financial Sector Development (Estidama) and Muscat Clearing and Depository Company (MCD).

According to the FSA, the eIPO system is expected to reduce the time and effort required to complete IPO procedures while ensuring a seamless flow of information between all relevant stakeholders. This will enhance transparency in financial transactions and contribute to a more advanced regulatory environment.

Key stakeholders, including issuers, the Muscat Stock Exchange (MSX), MCD, issue managers, and legal advisors, will benefit from improved coordination, fostering institutional cooperation and enhancing overall preparedness for securities offerings. Additionally, the introduction of this system aligns with the objectives of the capital market incentives programme.

Phased roll out

The first phase of the electronic issuance system focuses on three key procedures, beginning with the submission of securities issuance applications. This includes collecting and analysing financial and legal data related to the securities and ensuring compliance with applicable regulations. This stage also involves issuing initial approvals and providing the necessary guidance to facilitate the issuance process.

As a result, the eIPO system streamlines approval processes and simplifies regulatory procedures through digital transformation, reducing paperwork and administrative burdens for issuers. This advancement is expected to have a positive impact on the financial market.

The system will be implemented in two further phases beyond the current stage of application submission and issue approval, with details to be announced in due course, the FSA said in its statement.

The second phase include the book-building stage, which determines the price range for the securities in coordination with issue managers and investors. This process aims to ensure fair pricing in line with market standards. The final phase will be the listing stage on the MSX, where all regulatory procedures will be completed, and the securities will become available for trading. This will enhance market liquidity and increasing the attractiveness of investment in the Omani capital market.

The FSA continues to enhance its services for both individuals and institutions. In 2024, the percentage of digital transformation in FSA services exceeded 93%. Furthermore, the FSA made significant progress in the Digital Transformation Competence Index, achieving a score of 84% in 2024, up from 76% in 2023.