Muscat: The Ishraq Endowment Fund has launched its initial public offering (IPO) as of Monday, following the Financial Services Authority's (FSA) approval of its prospectus. The IPO aims to raise an initial capital of OMR10 million, with the subscription period set to last until 2 January 2025.
This fund was created in collaboration with the Ministry of Endowments and Religious Affairs, the Sultan Qaboos Higher Centre for Culture and Science, and Bank Nizwa. Oman National Investments Development Company (Tanmia) has been designated as the investment manager for the fund.
Subscriptions to the fund are open to both individuals and institutions. Individuals can invest a minimum of OMR500, while companies are required to invest at least OMR5,000. A premium of 20 baisas per unit will be charged on all subscriptions, with each unit valued at OMR1.
The fund offers three subscription types: (1) Permanent endowment, where the donor commits funds for charitable purposes, designating specific beneficiaries such as mosques, the needy, or orphans, with oversight from the Ministry of Endowments and Religious Affairs; (2) Temporary endowment, which allows subscribers to allocate funds for a defined period, specifying the intended expenditures at the time of subscription; and (3) Investor subscriber category, aimed at those looking to generate financial returns through the fund's investments.
Dr. Ahmed Ali Al Kaabi, Chairman of the Board of Directors of the Ishraq Endowment Fund, stated, “The Fund's initial public offering represents a groundbreaking approach to investment within the endowment sector in the Sultanate of Oman. Its objective is to uphold the fundamental principles of endowment while simultaneously fostering the well-being of Omani society and promoting long-term economic development.”
He further noted that the subscription process strengthens the fund’s capacity to promote Sharia-compliant financial solutions, thereby creating sustainable value for both investors and communities. He highlighted the significance of endowment as a crucial element in empowering society.
