Oman's Barka Desalination Co. (BDC) will offer 40 percent of its share capital, or 30,208,800 shares, in an IPO, which will be Oman’s first in three years.

The shares will be listed on Muscat Stock Exchange (MSX), BDC said in a statement.

The shares in the IPO will be offered on book-building basis in a price range of 115-145 baizas ($0.30-$0.38), which gives a dividend yield of 8.4 percent to 10.6 percent per year to investors, BDC said.

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 baiza 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.

Bank Muscat Investment Banking is the financial advisor and sole issue manager for the IPO.

(Reporting by Brinda Darasha; editing by Seban Scaria)

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