Sohar International has announced that it has been appointed as financial advisors of SV Pittie Sohar Textiles for its capital raise and public offering.
An agreement to this effect was inked at the bank’s head office in Muscat recently. Representing Sohar International was its Chief Executive Officer, Ahmed al Musalmi whereas Vinod Pittie, Chairman of SVP Group and Chirag Pittie, Managing Director of SVP Global Ventures represented Pittie Sohar Textiles.
Ahmed al Musalmi, CEO of Sohar International, said:: “Our investment banking experience and advisory capabilities, enable us to provide an unbeatable combination of experience, knowledge, and access; and will help match SV Pittie Sohar Textiles with anchor investors, to catalyse equity as a source of funding.
Working with SV Pittie Sohar Textiles, we intend to capture the goodwill of prudent investors who would like to diversify their investments, while developing a more robust economy with a stronger business base. Being among the few IPOs floated in Oman at the moment, the IPO is sure to contribute further to the expansion and diversification of the national economy.
The listing will also be in line with Oman’s Capital Market Authority’s Vision of becoming an engine for sustainable economic growth and wealth creation. Capital Market Authority has been instrumental in developing and promoting market participation.”
Chirag Pittie said: “High-tech yarn manufacturing plant in Sohar Freezone will ignite the growth of a full-fledged cotton industry in the Sultanate, encompassing potentially large-scale cotton cultivation, intermediate processing, and fabric manufacturing activities as well. We have long standing relation with Sohar International Sohar and will commence active preparations for the equity financing of the project soon. By listing SV Pittie Sohar Textiles on the market, we anticipate numerous benefits to the overall wealth creation of the company, our employees and subsequently to the economy of the Sultanate on the whole.”
Established in 1898, SV Pittie Group is one of the largest yarn manufacturers in India. SV Pittie Sohar Textiles is being built with an investment of $300mn on a 27-hectare area and will be equipped with 300,000 spindles and 7,000 rotors. Phase 1 of this project is scheduled to be commissioned later this month.
The plant will import 100,000 tonnes per annum of cotton from various countries, primarily being USA, Australia and India. It will produce finished yarn, which will then be exported to major textile markets residing in China, Bangladesh, Turkey and Pakistan.
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