Barka Desalination Company, owner of Oman’s largest operating water desalination plant, has announced its intention to launch an initial public offering (IPO).
The company said it will offer 40 percent of its share capital to the public through an IPO. BDC will offer 30,208,800 shares through a listing on Muscat Stock Exchange (MSX).
As anchor investors in the IPO, National Power & Water Co, an investment arm of Bahwan Engineering Group, and Bank Muscat have committed to invest upto 10 percent of the IPO.
BDC generates its revenues pursuant to a 20-year contracted water purchase agreement until 2038 with the Government of Oman-owned Oman Power & Water Procurement Company (OPWP).
The company said Barka IWP, its desalination plant, has achieved excellent operating performance with over 99 percent reliability in the last 12 months.
The IPO of BDC will follow a two-phased approach. Phase one will be an offer to large and institutional investors through a book-building method which is aimed at finding a fair value for the offer shares.
This will be followed by a phase two offer to the retail investors.
Patrick Thienpont, CEO of BDC, said: “The IPO is a unique opportunity to invest in a strategic asset that will continue to be held and managed by the marquee founders. We look forward to welcoming new partners in our future journey.”
BDC’s chairman Murtadha Sultan added: “Water is an essential commodity and a precious resource that forms the foundation of economic and social development in Oman. As the largest water supplier to the sultanate’s desalinated water production, we are proud of our contribution to Oman.
“Investors have a rare opportunity to invest in the water sector in Oman through BDC’s IPO. We are confident that both institutional and retail investors will make the best of this opportunity.”
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