Oman's Barka Desalination Co. (BDC) said it has closed Phase I of its IPO and set an allotment price of 145 baisas ($0.38), the top of the indicated range.

The Phase II of the IPO, where shares would be offered to retail investors, will open for subscription from 8 February 2022 to 14 February 2022.

Following the IPO, BDC will list on the Muscat Stock Exchange (MSX). As per the prospectus, IPO investors are expected to receive the first dividend of 6 baisas in April 2022.

As anchor investors in the IPO, National Power & Water Co. LLC (an investment arm of Bahwan Engineering Group), and Bank Muscat SAOG have committed to invest up to 10 percent of the IPO at 145 baisa per share, the highest end of the IPO price range.

BDC is promoted by Japan’s ITOCHU Corporation, Engie and Suez from France along with WJ Towell Group from Oman. It has contracted a 20-year water purchase agreement (WPA) with the state-owned Oman Power & Water Procurement Co., ensuring a steady revenue stream.

Last month the company said it would offer 40 percent of its share capital, or 30,208,800 shares, in the IPO, which will be Oman’s first in three years.

(Reporting by Brinda Darasha; editing by Seban Scaria)

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