Oman power entities garner global investor interest

However, in the case of the four Distribution & Supply entities lined up for privatisation, up to 70 per cent of the equity is being offered for investment, effectively granting administrative and operational control to the strategic investor.

The balance 30 per cent retained by Nama Group in the four Distribution & Supply entities is proposed to be offered for public investment via an Initial Public Offering (IPO) to be floated on the Muscat Securities Market (MSM). The timing of the IPO, however, will depend on the financial condition of the privatised companies, as well as prevailing market conditions, and after obtaining the green-light of the partner investor concerned, officials said.

Significantly, the privatisation process targeting Majan, Mazoon and Dhofar Power is proposed to be initiated by around mid-year 2019, and targeted for completion during the second half of 2020.

Commenting on the importance of the privatisation drive, Eng Al Wahaibi said: “Privatisation of electricity sector companies is considered one of highest priorities of Nama Holding. Through this initiative, Nama Holding aims at enhancing the role of the electricity sector in the national economy and helping in strengthening its position in international markets.”

Mansoon al Hinai added that the privatisation programme is designed to attract Foreign Direct Investment (FDI), harness best international technical skills and technology, benefit from international best practices and administrative expertise, improve customer services, enhance efficiency in resource utilisation, and help reduce the unit cost of electricity supply.