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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

MCDC IPO roadshow widely attended by investors

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MUSCAT, DEC 6 - Following the launch of the Initial Public Offering (IPO) of Muscat City Desalination Company (MCDC) SAOG (under transformation), investors’ interest is gathering pace. The company, alongside its issue manager — Bank Muscat Investment Banking, held IPO roadshow with key investors as well as research analysts from brokerages houses. Investment opportunities in IPOs in the power and water sector in Oman have traditionally attracted strong investors’ interest and the IPO offering from MCDC is also generating great interest from investors.


The roadshow meetings, which commenced on November 20 in Muscat and Salalah, were well attended by a wide cross-section of investor groups including institutional investors, high-net worth individuals and established family offices.


Through these meetings, MCDC’s management has presented the key investment highlights — which include a stable business model resilient to changes in water demand and electricity costs, experienced project founders (Sumitomo from Japan, Malakoff from Malaysia and Cadagua from Spain) as well as the diverse and experienced management team, strategic importance of the plant being the largest in Oman and a relatively higher projected dividend yield compared to other companies listed in this sector. Tamer Cankardes, Deputy Chairman stated, “We are proud to construct a strategic water asset for Oman which caters to approximately 60 per cent of installed water desalination capacity in Muscat.


Founding shareholders’ expertise in operating similar plants in the region and across the globe is reflected through the fact that the combined water production capacity across the globe managed by the founding shareholders is more than eight times the capacity installed in the Sultanate.”


Speaking on the investor roadshow, Subrina Thiagarajah, CEO of MCDC mentioned, “We are delighted with both the investors’ turnout and interest shown during the IPO roadshows. The roadshow is providing a great experience to meet the potential investors across Oman, share MCDC’s key investment highlights and address investors’ queries. The quality of discussions with the potential investors reflect their sound understanding of the inherent strengths of the sector as well as their deep interest in the investment opportunities in this sector.”


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