Musandam Power Company (MPC) SAOG (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 overall subscription of around 3.5 times. Each of the two phases of the IPO were 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, 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 [5] December 2019 under the ticker MSPW. Refunds for IPO investors are expected to be processed by [4] December 2019.
MPC has now announced the distribution of its first dividend of 27.6 baisa 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 baisa 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 the strong response to the IPO in spite of challenging market conditions.”
Elaborating on the response from retail segment, Ahmed Tufail al Rahman, Chairman of MPC added, “We would also take this opportunity to extend our sincere thanks to all other partners for managing the IPO process in an efficient manner and the Capital Market Authority (CMA) for their continued support and guidance. Musandam Power Company is excited to welcome our new institutional and individual investors into the fold and continue on its success story a listed company on the MSM.”
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.”
The Phase II of the IPO, in which applications were submitted through the newly introduced E-IPO process, saw a large number of applicants subscribing to the IPO through digital banking channels from the comfort of their home or offices, whilst other investors applied online at the MCD website and completing the subscription at bank branches. MPC was the first IPO to be launched under the new process, and this augurs well for future IPO issuances.
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