Sohar International Bank has completed an OMR149.3 million rights issue, strengthening its capital base as it pursues business expansion, digital investment and wider regional operations.The Muscat-listed lender offered 1,058,759,403 ordinary shares at 141 baisa each. The price comprised 139 baisa for each share and two baisa in issue expenses. The capital-raising exercise followed regulatory approvals and a subscription window that ran from July 21 to July 26.
Completion of the transaction increased the bank’s issued shares from about 6.62 billion to approximately 7.68 billion. The additional equity gives Sohar International greater capacity to support lending growth while maintaining capital buffers required under banking regulations.
The rights were made available to shareholders registered on July 12, with investors permitted to subscribe to their entitlements or trade them through the Muscat Stock Exchange. Final allocations were completed before the new shares were admitted to trading at the end of July.
The transaction adds to a series of capital-raising measures undertaken by Sohar International as the bank expands its balance sheet and prepares for stricter capital requirements. It raised OMR130 million through a rights issue in 2024 and completed an OMR200 million perpetual Tier 1 bond placement in 2025.
Sohar International also announced plans this year to issue mandatory convertible bonds, broadening its capital structure beyond ordinary shares. Such instruments allow banks to secure funding that can later convert into equity, supporting regulatory ratios without relying solely on conventional borrowing.
The latest rights issue was approved by the Central Bank of Oman and the Financial Services Authority. Sohar International and Oman Investment Bank served as issue managers, while Sohar International was also appointed as the collecting bank.
The offering came as the lender reported continued profit and revenue growth. Net profit rose 21 per cent to OMR26.1 million during the first quarter of 2026, from OMR21.5 million in the same period a year earlier. Total revenue increased 30 per cent to OMR71.3 million, although expenses climbed 35 per cent to OMR33.3 million.
For the full year ended December 2025, Sohar International generated net profit of OMR100.5 million, little changed from OMR100.2 million in 2024. Annual revenue rose 3 per cent to OMR252.4 million, while expenses increased 13 per cent to OMR111.5 million.
The stronger capital position could help the bank absorb the impact of rising costs while expanding credit to companies and households. It also gives management more flexibility to invest in technology, wealth management, Islamic banking and regional services.
Sohar International has been widening its geographical reach alongside its domestic growth programme. The bank secured approvals from regulators in Oman and Hong Kong to establish a representative office in the Chinese special administrative region. The office is expected to help connect Oman-based businesses with Asian investors and financial institutions.
The expansion reflects growing financial and commercial ties between Oman and China. Hong Kong also offers access to international capital markets and companies operating across mainland China and Southeast Asia.
The bank operates conventional banking services and Sohar Islamic, its Islamic banking window. Its activities span retail, corporate, wholesale and investment banking, supported by a network of 79 branches and more than 1,600 employees.
Sohar International has emerged as one of Oman’s largest listed lenders after completing its merger with HSBC Bank Oman in 2023. The combination expanded its customer base, branch network, loan portfolio and deposit franchise, while increasing its ability to compete with larger institutions in the sultanate.
The bank’s main shareholders include Royal Court Affairs, Dhofar International Development and Investment Company, Seventh Moon Investment, Neptune National Investments and Western Sea Investments. Together, institutional and strategic investors hold a substantial portion of its equity, with the remaining shares distributed among other investors.
Oman’s banking industry has remained supported by firm economic activity, government infrastructure spending and stable hydrocarbon revenue. Banks are also increasing finance for tourism, logistics, manufacturing, renewable energy and other sectors prioritised under Oman Vision 2040.
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