23/06/2014 06:09 AST
Following the closure of the Initial Public Offerings (IPOs) of Al Batinah Power Company SAOG (under transformation), and Al Suwadi Power Company SAOG (under transformation) on 9 June 2014, the Capital Market Authority of the Sultanate of Oman approved the allotment of shares to investors on 18 June 2014.
The OMR 32.5 million IPO of Al Suwadi Power was overall subscribed 10.51 times, with Category I (i.e. up to 600,000 shares) being subscribed 5.31 times and Category II (i.e. greater than 600,100 shares) being subscribed 20.16 times. Similarly, the OMR 30.2 million IPO of Al Batinah Power was overall subscribed 5.56 times, with Category I (i.e. upto 600,000 shares) being subscribed 10.80 times and Category II (i.e. greater than 600,100 shares) being subscribed 20.52 times.
In Al Suwadi Power, investors who applied for 600,000 or less shares have been allotted a minimum of 5,000 shares and a pro rata allotment thereafter of 9.226 per cent. The Category II investors who applied for 600,100 shares or more were allotted 4.959 per cent of their application. In the case of Al Batinah Power, those investors who applied for 600,000 or less shares have been allotted a minimum of 5,000 shares and a pro rata allotment thereafter of 8.217 per cent. The category II investors who applied for 600,100 shares or more were allotted 4.871 per cent of their application.
The allotment of shares for both the companies has been completed and the refunds to the investors have also been completed. Both the companies are expected to list on the
Muscat Securities Market (MSM) on 23 June 2014, 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 668.1 million, attracted strong levels of demand 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.
Commenting on the successful close of the two IPOs, 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. We look forward to welcoming our new institutional and individual investors as part of our companies. We thank Bank Muscat for managing the IPO process in an efficient manner and also thank the Capital Market Authority for their support and guidance in taking both these companies public. 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.”
Jurgen De Vyt, CEO of Al Batinah Power, said: “The comparable levels of oversubscription are a clear sign that investors recognised the similarity and attractiveness of both offerings. The success of the IPOs gives investors, especially the people of Oman, the chance to share in the growth of this important and crucial sector to the economy of Oman. Both companies will also benefit from the establishment of a broader and more diversified investor base.”
The two initial public offers were lead managed by Bank Muscat and the collecting banks included Bank Muscat, National Bank of Oman, Oman Arab Bank, Bank Dhofar, Bank Sohar and Ahli Bank.
CPI Financial
Please wait...
