MCDC’s OMR6m share offer to open on November 19

MUSCAT: Muscat City Desalination Company (MCDC), which owns the Ghubrah Independent Water Plant, plans to float its OMR6.31 million initial public offering (IPO) on November 19. The offer price is fixed at 116 baisas, which include a nominal value of 100 baisas, a premium of 14 baisas and an expenditure of 2 baisas per share.

The company is offering 54.44 million shares or 35 per cent of its paid up capital through the planned IPO, which will close its one-month subscription on December 18, according to the issue prospectus posted by the Capital Market Authority.

Bank Muscat is the financial advisor and issue manager for the share offer.

According to the prospectus, 65 per cent of the share offer is reserved for category one or small investors, who apply for up to 500,000 shares, while the remaining 35 per cent allocation will be for those investors (category two) who apply for 500,100 or more shares.

The share offer is available for both Omani and non-Omani investors. The initial public offering complies with the obligations stipulated in the project founders’ agreement.