Bank Muscat to advise Muscat City Desalination on IPO

Muscat: Bank Muscat has been selected to advise the Muscat City Desalination Company for its Initial Public Offering (IPO) on the Muscat Securities Market (MSM), which is expected sometime in the third quarter of this year.
Muscat City Desalination Company (MCDC), which owns and operates the 42 million imperial gallons per day (MIGD) capacity Al Ghubra independent water project, has to divest a stake in the favour of the investing public as per an agreement with the Oman government.
The company has already sought approval for floating shares on MSM.
MCDC, which started operations in February 2016, was jointly promoted by Malaysia’s Malakoff International, Sumitomo Corp of Japan and Cadagua of Spain.
The plant was established under a Build, Own and Operate scheme, which enables it to be operated beyond the Water Purchase Agreement term of 20 years, either by extending the agreement (if agreed by OPWP), or by selling the water into the market, which may exist by that time.
Meanwhile, two insurance companies—Al Ahlia Insurance and Vision Insurance—have already floated their share offers, while three more insurance firms are expected to open their IPOs for subscription in August.
Bank Muscat is also the financial adviser and issue manager for Al Ahlia Insurance. Al Ahlia Insurance had floated its OMR7.5 million IPO on July 4 at an offer price of 300 baisas per share. In the IPO, 65 per cent of the offered shares have been reserved for small investors applying a minimum of 1,000 shares to a maximum of 250,000 shares, with the remaining 35 per cent of shares reserved for large investors applying for a minimum of 250,100 shares up to a maximum of 2,500,000 shares. The IPO represents an offer of 25 per cent of the share capital of the company.
Likewise, Vision Insurance had also opened its OMR4 million share offer at a price of 162 baisas per share on July 9.
The 25 million shares on offer constitute 25 per cent of the share capital of the company. Vision Insurance’s issued and paid-up share capital is OMR10 million, divided into 100 million shares with a nominal value of 100 baisas per share.
National Life and General Insurance, Oman and Qatar Insurance and Arabia Falcon Insurance are planning to open share offer subscriptions in August, according to reliable sources. All insurance companies are offering 25 per cent of their paid-up capital to the investing public and institutions in a one-month subscription.