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Muscat City Desalination mulls IPO later this year

Muscat City Desalination Company (MCDC), which owns and operates the 42 million imperial gallons per day (MIGD) capacity Al Ghubra independent water project, has to divest a stake in the favour of the investing public

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Muscat City Desalination Company plans to float an Initial Public Offering (IPO) on the Muscat Securities Market (MSM) in the third quarter of this year.

Muscat City Desalination Company (MCDC), which owns and operates the 42 million imperial gallons per day (MIGD) capacity Al Ghubra independent water project, has to divest a stake in the favour of the investing public as per its agreement with the Oman government, reported Times of Oman.

The company, according to highly placed sources at the Capital Market Authority, has sought approval for floating shares on MSM.

MCDC, which started operation in February 2016, was jointly promoted by Malaysia’s Malakoff International, Sumitomo Corp of Japan and Cadagua of Spain.

The plant was established under a Build, Own and Operate scheme, which enables it to be operated beyond the Water Purchase Agreement term of 20 years, either by extending the agreement (if agreed by OPWP), or by selling the water into the market, which may exist by that time.

The plant is based on the Seawater Reverse Osmosis technology and is one of the largest operational desalination plants in Oman. The technology employed at the plant is a proven technology that has been implemented globally in numerous projects, reported Times of Oman.

The company has an operation and maintenance agreement with Muscat City Operation and Maintenance Company, a company incorporated in the Sultanate of Oman, for the operation and maintenance of the plant.

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