16 May 2013
Muscat: Sharqiyah Desalination Company (SDC), the first independent water project (IWP) in the Sultanate, has come up with an initial public offering (IPO) of 2.282 million shares. The offer is now open for subscription and will close on June 13. SDC has a paid-up capital of OMR6.52 million, said Xavier Joseph, CEO of the company. The shares will be available only to the individual investors and is priced at OMR1.063 per share, which includes a nominal value of OMR1, a premium of 43 baisas and an issue expense of 20 baisas.
The minimum limit of subscription is 100 shares and the maximum is 10 per cent of the total offer size (representing 228,205 shares). Speaking on the occasion, Xavier Joseph said that SDC is an effective answer to meet the growing need of Shariqyah region. It was in 2007 that the SDC was awarded by the ministry a contract on build, operate and own (BOO) basis for the reverse osmosis plant in Sur. The plant has a current capacity of 80,176 square metres per day.
"We are working on the expansion with a possibility of expanding up to 135,000 square metres per day by the end of this year. The project cost (of the existing plant) stood at OMR62.5 million," he further added. Philippe Da Costa, chief financial officer (CFO) of SDC, presented the company's financials.
Loay Bataineh, DGM of Oman Arab Bank, said: "In case of over-subscription, 70 per cent of the offer will be allotted to individuals applying for 10,000 shares or less while 30 per cent will be for individuals applying for more than 10,000 shares. Allotment is subject to CMA approval. The refund date will be 27 June while listing of shares will be done on June 30. The ordinary general meeting will be convened within 45 days from close of the offer."
SDC owns and operates the desalination plant in Sur, which serves the Sharqiyah region that is growing in terms of population and economy. SDC addresses the depletion of the region's limited groundwater resource by processing over 200,000 square metres per day of seawater from its beach-wells catchment, one of the largest in the world.
SDC produces 80,000 square metres per day of drinking water to 350,000 inhabitants using a relatively energy efficient reverse osmosis technology. During the year ended December 31, 2012, SDC generated revenues of OMR9.63 million and a profit after tax of OMR2.76 million. In 2012, the company has distributed a dividend of OMR2.8 million (OMR0.429 per share) related to the results of the year 2011.
The offer price of OMR1.063 per share is 44 per cent lower than the book value (before hedging deficit) of OMR1.913 per share as on December 31. The proceeds from the issue (including the premium) will accrue to the current shareholders in the ratio of shares offered as the promoters of the company are divesting 35 per cent of their holding as part of their contractual obligation with the Government.
Oman Arab Bank - Investment Management Group - is acting as financial advisor and issue manager for the offer. Applicants may submit their applications to any of the three collecting banks - Oman Arab Bank, Bank Muscat and National Bank of Oman. The application form and prospectus relating to the offer can may be obtained from these collecting banks.
Muscat: Sharqiyah Desalination Company (SDC), the first independent water project (IWP) in the Sultanate, has come up with an initial public offering (IPO) of 2.282 million shares. The offer is now open for subscription and will close on June 13. SDC has a paid-up capital of OMR6.52 million, said Xavier Joseph, CEO of the company. The shares will be available only to the individual investors and is priced at OMR1.063 per share, which includes a nominal value of OMR1, a premium of 43 baisas and an issue expense of 20 baisas.
The minimum limit of subscription is 100 shares and the maximum is 10 per cent of the total offer size (representing 228,205 shares). Speaking on the occasion, Xavier Joseph said that SDC is an effective answer to meet the growing need of Shariqyah region. It was in 2007 that the SDC was awarded by the ministry a contract on build, operate and own (BOO) basis for the reverse osmosis plant in Sur. The plant has a current capacity of 80,176 square metres per day.
"We are working on the expansion with a possibility of expanding up to 135,000 square metres per day by the end of this year. The project cost (of the existing plant) stood at OMR62.5 million," he further added. Philippe Da Costa, chief financial officer (CFO) of SDC, presented the company's financials.
Loay Bataineh, DGM of Oman Arab Bank, said: "In case of over-subscription, 70 per cent of the offer will be allotted to individuals applying for 10,000 shares or less while 30 per cent will be for individuals applying for more than 10,000 shares. Allotment is subject to CMA approval. The refund date will be 27 June while listing of shares will be done on June 30. The ordinary general meeting will be convened within 45 days from close of the offer."
SDC owns and operates the desalination plant in Sur, which serves the Sharqiyah region that is growing in terms of population and economy. SDC addresses the depletion of the region's limited groundwater resource by processing over 200,000 square metres per day of seawater from its beach-wells catchment, one of the largest in the world.
SDC produces 80,000 square metres per day of drinking water to 350,000 inhabitants using a relatively energy efficient reverse osmosis technology. During the year ended December 31, 2012, SDC generated revenues of OMR9.63 million and a profit after tax of OMR2.76 million. In 2012, the company has distributed a dividend of OMR2.8 million (OMR0.429 per share) related to the results of the year 2011.
The offer price of OMR1.063 per share is 44 per cent lower than the book value (before hedging deficit) of OMR1.913 per share as on December 31. The proceeds from the issue (including the premium) will accrue to the current shareholders in the ratio of shares offered as the promoters of the company are divesting 35 per cent of their holding as part of their contractual obligation with the Government.
Oman Arab Bank - Investment Management Group - is acting as financial advisor and issue manager for the offer. Applicants may submit their applications to any of the three collecting banks - Oman Arab Bank, Bank Muscat and National Bank of Oman. The application form and prospectus relating to the offer can may be obtained from these collecting banks.
© Times of Oman 2013
