By Sam Bridge
Musandam Power Company says phase two of the IPO, when shares will be offered to retail investors, will open for subscription from Wednesday
Musandam Power Company (MPC), the owner of the first independent power plant in the Musandam Governorate of Oman, has announced the successful close of the first phase of its IPO for listing on the Muscat Securities Market.
Based on the price discovery process completed through book building by large and institutional investors, the allotment price for shares has been determined at 316 baizas.
In phase one of the IPO, the offer received a strong response with an oversubscription of 5.6 times of offer shares. The investors included a cross-section of Oman’s sovereign funds, pension funds, banks, asset management companies, corporates as well as high net worth individuals.
A high number of bids came at the top end of the price range of Bzs260 to Bzs325 per offer share.
Phase two of the IPO, when shares will be offered to retail investors at the price of bzs316 will open for subscription from Wednesday to Thursday November 21.
Sultan Al-Burtmani, shareholders spokesperson said: “Being a benchmark issuance for the Oman Oil and Orpic Group, we are extremely pleased with the success of phase 1 of the IPO, which is a positive indication of the confidence in the industry and market in MPC.”
Ahmed Tufail Al Rahman, chairman of MPC added: “Wide and strong participation in the phase 1 of the IPO is in line with our expectations and endorses the response we received during our investor meetings. Retail investors now have the advantage to see the strong response from the large investors and can now apply to become part of the success story of Musandam Power.”
The shares of Musandam Power are expected to be listed on Muscat Securities Market by the first week of December, post completion of settlement and refund formalities.
With a contracted power capacity of about 120MW, MPC said it contributes to a significant proportion of the current and future projected electricity demand of the Musandam Governorate.
The company currently generates its revenues pursuant to a 15-year power purchase agreement with Oman Power and Water Procurement Company, which is indirectly wholly owned by the Government of Oman.