IPO

6 power and water companies to launch IPOs in next 3 years – Muscat- Oman

 As many as six power generation and water desalination companies will launch their initial public offerings (IPOs) to list on the Muscat Securities Market (MSM) within three years, according to Oman Power and Water Procurement Company (OPWP). As per their project founders agreements, Oman’s independent water and independent power projects are required to offer a minimum 35 per cent of the share capital to the public within four years of the incorporation of the company. ‘There are six power and water sector projects that will be going for IPOs within next three years. Out of these six projects, four IPOs will be from power sector and two from water sector,’ Eng Yaqoob Saif Hamood al Kiyumi, chief executive officer of OPWP told Muscat Daily recently. Kiyumi said that the power and water sector companies currently account for approximately RO400mn of market capitalisation on the MSM. ‘We should see a large amount of additional capital to be listed on the stock market from these six new IPOs. With the sound record of these projects, I am sure they will only increase sector’s contribution to Oman’s capital market,’ he said. Kiyumi said, ‘The huge success of previous power and water companies’ IPOs provides a clear indication of investors’ faith in the development of Oman’s power and water sectors.’ Recently, Muscat City Desalination Company (MCDC) completed its IPO which was oversubscribed nearly 19 times. The shares of MCDC surged more than 35 per cent on listing at the Muscat Securities Market on Tuesday.Kiyumi said that the clarity in Oman’s regulatory processes created a friendly environment for developers and investors in power and water sectors. ‘There is a fair and transparent competition in the sector that will further enhance investors’ appetite to invest in power and water projects,’ he added.

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Desalination IPO opens for subscription – Muscat City – Oman

MUSCAT, NOV 18 – Muscat City Desalination Company (MCDC) SAOG (under transformation) has announced the opening of its Initial Public Offering (IPO) for subscription from today, November 19, 2017. Bank Muscat is the financial adviser and issue manager for the IPO. The founding shareholders, who are leading international names in the industry, are selling these shares to the public to comply with their obligations in the Project Founder Agreement signed with the government of Oman. MCDC is offering 54,442,640 offer shares at a price of 116 baisas per offer share (comprising a nominal value of 100 baisas, premium of 14 baisas and offer expenses of 2 baisas per offer share). The IPO represents an offer of 35 per cent of the share capital of the company. The IPO opens for subscription today (November 19) and will close on December 18, 2017. The IPO is open for subscription to Omani and non-Omani investors including individual and institutional investors. In the IPO, 65 per cent of the shares made available for subscription have been reserved for investors applying for a minimum of 1,000 shares and a maximum of 500,000 shares, and 35 per cent of the shares have been reserved for investors applying for a minimum of 500,001 shares up to a maximum of 5,444,200 shares.
According to Subrina Thiagarajah, CEO of MCDC, the company (MCDC) has “steady and reliable cash flows with a stable business model based on a 20-year offtake agreement with Oman Power and Water Procurement Company (OPWP), which is owned by the government of Oman. The agreement is 33 per cent longer than the 15-year term given to power companies.
This would translate into cash flow visibility for a longer period for MCDC shareholders.” She added that the plant operations and maintenance is contracted for 20 years to experts with international experience. The company also benefits from marquee Project Founders — Malakoff International (Malaysia), Sumitomo Corporation (Japan) and Cadagua S A (Spain) — that are strong and experienced, having extensive expertise and demonstrated track record in the global water industry. Together, the Project Founders have experience in combine water production capacity exceeding 7.5 million cubic metre per day. The company’s management team is also highly experienced. Tamer Cankardes, Vice Chairman of Board of Directors of MCDC said the company is the owner of Oman’s largest operating desalination plant, the Ghubrah Independent Water Plant (Ghubrah IWP) located in Muscat, with a total investment of more than RO 100 million. The plant was commissioned in February 2016, with a 21-month successful operating records, hence the company has full operating assets, with no construction and commissioning risk. “MCDC contracted a water capacity of 191 TMC/day, making it the largest operating water plant in Oman. The plant, with a total capacity output to deliver 42 million gallons of potable water every day, provides approximately 24 per cent of total water capacity based in the Interconnected Zone and 60 per cent of the total water demand for Muscat city.” He also added that the plant, based on globally proven and reliable seawater reverse osmosis technology, helps the company deliver uninterrupted water supply with minimum outages. Seawater reverse osmosis technology-based desalination plant process is relatively simpler as compared to that of a power plant. “Key inputs are just seawater and electricity, hence there is no direct dependence and risk of gas allocation unlike in power plants.” Cancardes reiterated that the plant is set to perform well once the Water Purchase Agreement with Oman Power and Water Procurement Company (OPWP) expires as it is expected to be competitive and well placed in the water demand and supply landscape. The company has no outstanding liquidated damages with OPWP. (LINK)

Formerly Siemens Water Technologies, Evoqua Water Technologies plans to go public

Evoqua Water Technologies LLC has confidentially submitted a draft registration statement on Form S-1 with the US Securities and Exchange Commission (SEC) relating to a proposed initial public offering (IPO) of its common stock.

The number of shares to be offered and the price range for the proposed offering have yet to be determined.

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Muscat City Desalination plans public offering in third quarter

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 an agreement with the Oman government.

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.

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