Musandam Power Company (MPC) plans to list 40 per cent of its equity shares on Muscat Securities Market as stated in the Project Founders’ Agreement, according to Oman News Agency.
The price range translates into an average dividend yield of 8.6 per cent to 10.7 per cent for IPO investors, the highest dividend yield offered across all power and water sector share sales in the last five years in the Sultanate.
MPC’s IPO is going to be the first share sale in the country under the new guidelines introduced by the Capital Market Authority (CMA). The listing will adopt several new mechanisms that are being introduced for the first time in the country, including a two-phased approach.
Phase I will be an offer to institutional investors through a book-building method that is aimed at finding a fair value for the offered shares while phase II is offer to the retail investors based on a fixed price as well as introducing e-IPO for Phase II for increasing investor convenience.
The introduction of these new mechanisms is expected to provide more transparency and attract wider interest as well as participation in the share sale.
Bank Muscat Investment Banking is the financial advisor and the sole issue manager for this IPO. Additionally, MPC has appointed the largest ever collection syndicate for any IPO in Oman consisting of four banks and three brokerage firms.
MPC is founded by a consortium comprising companies with an established track record in the regional and global energy industry such as Oman Oil Company, Orpic Group and LG International Corporation.