18 June 2015
MUSCAT: Phoenix Power, which floated an initial public offering of OMR56.3 million, has allotted a minimum of 3,000 shares and 8.57 per cent of additional shares applied by retail or first category investors.
As far as the second category or institutional investors are concerned, the allotment is merely 2.52 per cent of applied shares, according to the stock market regulator Capital Market Authority.
As many as 49,096 investors - 48,727 retail investors and 369 institutional investors - received allotment.
Phoenix Power initial public offering, which closed one-month subscription on June 8, was subscribed to the tune of 18 times, mobilising bids worth OMR1 billion from investing public.
Refund of excess application money will start on June 21 and the shares will be listed on June 22.
The primary issue was divided into two categories, on the basis of size of subscription. As many as 65 per cent was reserved for the first category, who apply for shares between 1,000 and 600,000, while the second category was institutions and high-net worth individuals who apply for shares between 600,100 and 51,191,000. The share offer was available for both Omanis and foreign residents.
The minimum allotment of shares for retail investors is aimed at providing them opportunities to enter the stock market and gain from their investment. The Phoenix Power IPO resulted in a growth in number of new investors on the Muscat Securities Market (MSM).
The heavy oversubscription shows the trust of investors in Omani bourse.
As the largest power plant in Oman, Phoenix Power's power capacity of 2,000 megawatt represents 27.8 per cent of the main interconnected system. The $1.6 billion-independent power project has a 15-year power purchase agreement with a government entity, which will expire in 2029.
© Times of Oman 2015