Omani power IPOs heavily oversubscribed
Investors scramble for shares in GDF Suez-backed power plants.
The initial public offering (IPO) of two power plants in Oman was heavily oversubscribed.
The OMR 32.5mn IPO of Al Suwadi Power was overall subscribed 10.51 times while the OMR 30.2mn IPO of Al Batinah Power was overall subscribed 5.56 times, a statement said.
Both companies are expected to list on the Muscat Securities Market (MSM) on 23 June, with Al Suwadi Power trading under the ticker “SUWP” and Al Batinah Power trading under the ticker “BATP”.
The two offers, which received a combined subscription of OMR 668.1mn, attracted strong levels of interest from both retail and institutional investors across the Sultanate and the GCC.
According to the subscription data received from the MCDC, a combined total of more than 39,800 investors have participated in the offers of the two companies, which was one of the highest in recent times.
Przemek Lupa, CEO of Al Suwadi Power, said: “We are delighted with the level of interest that the IPOs have generated in Oman and the region.
“The significant oversubscription for both IPOs confirms the confidence of investors in the outstanding fundamentals of the offerings.
“The long-term agreements with the government of Oman that underpin the profitability of both companies, the strength of the project partners and the attractive pricing of the IPOs proved a hugely successful combination.”
GDF Suez will hold a 30% stake in each power plant following the IPO.