MUSCAT, Nov. 1 (Xinhua) -- Oman's biggest desalination firm, Muscat City Desalination Company (MCDC), plans to float an initial public offering (IPO) on the Muscat Securities Market in the second half of November, the company said in a press release on Wednesday.
The promoters of MCDC, Malakoff International (Malaysia), Sumitomo Corporation (Japan) and Cadagua S.A, will divest 35 percent of their shareholdings in favor of investing public through the share offer.
Accordingly, 54.44 million shares will be on offer and the issue is managed by Bank Muscat. However, the offer price is not disclosed.
The company is the owner of Oman's largest water plant contributing to 24 percent of total water capacity in the Interconnected Zone, added the press release.
MCDC has a long-term water purchase agreement until 2034 with the state-owned Oman Power & Water Procurement Company, ensuring stable and predictable cash flows.
The MCDC project, which started operation in February 2016, was established with a capital expenditure of 266 million U.S. dollars to produce 42 million gallons of potable water every day.
Oman's bourse witnessed four IPOs from national insurance firms so far this year: Al Ahlia Insurance, Vision Insurance, Oman Qatar Insurance and National Life and General Insurance.
