MEDC planned IPO to be reconsidered

The company’s share sale has been stalled currently owing to challenging economic conditions

MUSCAT: The planned privatisation of the state-owned Muscat Electricity Distribution Company (MEDC) is being reconsidered, officials at the parent Nama Group said.

The Initial Public Offering (IPO) of MEDC was expected to be announced by end of this month; however, owing to challenging economic conditions, it has been stalled and Nama Holding is working on future plans that may include bringing on a strategic partner aboard.

“Due to the regional economic conditions, the privatisation steer- ing committee will be revising the privatisation mode and model to achieve a long-term and market proof de-investment strategy,” Omar Al Wahaibi, chief executive officer of Nama Holding Group, said during the annual press conference of company.

Technical partner

“We are studying to get a strategic or technical partner with us instead of an IPO, but we will announce at a later stage what our decision is. It may be a strategic partner or some other method of privatisation, but there is nothing definitive now. The main reason for this is the current economic condition and the appetite for an IPO at present.”

Earlier, announcements were made on the Omani government’s disinvestment of 49 per cent stake in MEDC by the first half of this year and variables, such as size of issue and offer price were being discussed.

The objectives of MEDC’s privatisation is to promote individual and institutional participation to aid the holding company further play an active role in developing the backbone infrastructure for further economic development. The government’s privatisation of MEDC was expected to also enhance and develop the capital market in Oman, in addition to increasing local investments of domestic investors.