Speaking on the positive response, Sultan al Burtmani, shareholders spokesperson commented: “The IPO of MPC, which is the first from Oman Oil and Orpic Group is generating significant interest amongst the investor community in Oman. MPC has the backing of its Project Founders with a demonstrated track record of implementing large and complex independent power plants globally, and in Oman. The Project Founders, Oman Oil and Orpic Group and LG International Corp (LGI), will remain shareholders post-IPO, with an aggregate holding of 60 per cent and they will continue to ensure reliable management and governance of the Company. We are very pleased with the strong interest and enthusiasm surrounding this IPO.”
Further elaborating on the strength of the offer, Ahmed Tufail al Rahman, Chairman of MPC added, “The keen interest of the investor community reflects the key highlights of the offering, which is an attractive and robust sector, strong & reputed founding shareholders, steady & reliable cash flows based on power purchase agreement with OPWP till the year 2032 indifferent to the power demand, and a dividend yield that compares favourably to the peers in the industry.
Investors have particularly been attracted to the offer as it offers a clean equity story — only power plant in Musandam area with no cash sweeps, no litigation either with OPWP or with EPC contractor. Investors have also noted that the first dividend of 27.6 baisas is to be distributed to all shareholders including IPO investors within 1 month of IPO listing (in December 2019)”.
Salim al Hashmi, Project Director of MPC commented, “In the long-term perspective, the investment offers investors the opportunity to be part of a unique success story with a strategic asset situated in the Musandam peninsula”.
MPC is offering 28,156,000 shares in a price band of 260 baisas to 325 baisas per share. At the IPO price, the Company offers an average projected dividend yield of 8.6 per cent to 10.7 per cent. Investors in Phase I of the IPO can submit their application forms at the head offices of Bank Muscat, Bank Dhofar, Ahli Bank, NBO, Gulf Bader Capital Markets, U-Capital or United Securities from 10 am to 2 pm from November 3 to November 6, 2019 and from 10 am to 12 noon on November 7, 2019.
Source Link: www.omanobserver.om