Oman plans to hold two IPOs in power sector

Oman's state-run utility says two projects will float 35% in April 2012 and 2013
Oman plans to hold two IPOs in power sector
(Getty Images - photo for illustrative purposes only)
By Reuters
Tue 11 Oct 2011 09:46 PM

The Gulf Arab state of Oman is planning to hold two initial public offerings (IPO) in its power sector in the next two years, the chief executive at state-run Oman Power and Water Procurement Co (OPWP) said on Tuesday.

"Two power projects, one at Sur and the other at Batinah will float 35 percent IPO each in April 2012 and April 2013 respectively," Bob Whitelaw told delegates at the Oman Investment Forum.

Last year, OPWP awarded Phoenix Power Co a 25-year agreement to build-own-operate the 2000-megawatts Sur power company, which will cost $1.5bn when the plant is commissioned in 2014.

Phoenix Power is made up of a consortium of Marubeni Corporation, Chubu Electric Power Co Inc, Qatar Electricity and Water Company and a local group Bahwan Engineering Group.

The second IPO in April 2013 is being planned by Batinah Power Company, but the government has yet to sign an agreement with the developers.

Last month, SMN Power Company offered 35 percent of its share capital in an IPO that closed on Monday.

Four power companies already trade on the Omani bourse

The central bank governor on Monday said that Nizwa and Al Izz International banks will each float 40 percent of their share capital in public offerings early next year, bringing the total planned IPO issues in 2012 to three.

For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.