Muscat: Musandam Power Company (MPC) (under transformation), the subsidiary company from Oman Oil and Orpic Group, has announced the successful close of Phase II of its IPO.
The 28 million shares IPO offering, was comfortably oversubscribed with an overall subscription of around 3.5 times. Each of the two phases of the IPO was oversubscribed and witnessed strong levels of demand from both retail and institutional investors. The IPO successfully introduced several new market practices to Oman’s equity capital markets including book-building for institutional and large investors with the live display of order book, the participation of brokers in the collection of application and the E-IPO process for applications by retail investors. Trading of the company’s shares is set to commence on the Muscat Securities Market (MSM) on or around December 5, 2019 under the ticker MSPW. Refunds for IPO investors are expected to be processed by December 4, 2019.
MPC has now announced the distribution of its first dividend of 27.6 bzs per share. As per the announcement, the record date for this dividend distribution would be 9 December 2019. So all investors holding shares of MPC on this date would receive the first dividend of 27.6 bzs per share.
Commenting on the success of Phase II, Sultan Al-Burtmani, spokesperson on behalf of the Shareholders said, “With the oversubscription of the Phase II offer to retail investors, and the success of Phase I offer earlier, we can proudly say that the IPO of Musandam Power has been a success. The strong response from both institutional and retail investors alike is a positive reflection on the shareholders - Oman Oil and Orpic Group and LG International. We would like to thank our financial advisor – Bank Muscat investment banking for their valuable contribution to this success and for achieving a strong response to the IPO in spite of challenging market conditions.”
Salim Al Hashmi, Project Director of MPC, said: “This is a truly a milestone and proud moment for the company and our people. Since inception, Musandam Power has overcome innumerable challenges and turned them into success. The plant was conceptualised to operate in very harsh conditions in high humidity and extreme temperatures, and built at one of the most challenging environments, and commissioned on time. And right through, maintaining a high standard of monitoring of the peninsula’s vital coral reefs and upholding world-class safety standards. With the IPO, Musandam Power now truly belongs to the people and the nation. As we stand alongside the people of Oman on the proud occasion of the 49th National Day, we are excited to invite our new shareholders to join us as MPC becomes part of a national infrastructure contributing to the development of Musandam and the making a wider positive impact on the economy.”