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MPC IPO oversubscribed 3.5 times

5 Dec 2019

Musandam Power Company (MPC), a subsidiary of Oman Oil and Orpic Group, has announced the successful closing of the second phase of its initial public offering (IPO).

The 28mn shares IPO was comfortably oversubscribed with overall subscription of around 3.5 times. Each of the two phases of the IPO were oversubscribed and witnessed strong levels of demand from both retail and institutional investors, MPC said in a press statement.

The trading of the MPC shares is set to commence on the Muscat Securities Market on or around December 5 under the ticker MSPW. Refunds for the IPO investors are expected to be processed by December 4, the company said.

MPC has now announced the distribution of its first dividend of 27.6bz per share. As per the announcement, the record date for this dividend distribution would be December 9. So all investors holding shares of MPC on this date would receive the first dividend of 27.6bz per share.

The Musandam Power IPO successfully introduced several new market practices to Oman’s equity capital markets including book-building for institutional and large investors with the live display of order book, participation of brokers in the collection of application and the e-IPO process for applications by retail investors.

Sultan al Burtmani, shareholders spokesperson at MPC, said, “With the oversubscription of the phase 2 offer to the retail investors, and the success of phase 1 offer earlier, we can proudly say that the IPO of Musandam Power has been a success. The strong response from both institutional and retail investors alike is a positive reflection on the shareholders – Oman Oil and Orpic Group and LG International. We would like to thank our financial advisor – Bank Muscat Investment Banking for their valuable contribution to this success and for achieving the strong response to the IPO in spite of challenging market conditions.”

Elaborating on the response from retail segment, Ahmed Tufail al Rahman, chairman of MPC, said, “We would take this opportunity to extend our sincere thanks to all other partners for managing the IPO process in an efficient manner and the Capital Market Authority for their continued support and guidance. Musandam Power is excited to welcome our new institutional and individual investors into the fold and continue on its success story a listed company on the MSM.”

The phase 2 of the IPO, in which applications were submitted through the newly introduced e-IPO process, saw a large number of applicants subscribing to the IPO through digital banking channels from the comfort of their home or offices, whilst other investors applied online at the MCD website and completing the subscription at bank branches. MPC was the first IPO to be launched under the new process, and this augurs well for future IPO issuances.

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