(MENAFN- Muscat Daily) Muscat- As many as six power generation and water desalination companies will be launching their initial public offerings (IPOs) for listing on the Muscat Securities Market (MSM) within next two years, according to Oman Power and Water Procurement Company (OPWP).
As per their project founders agreements, Oman's independent water projects (IWPs) and independent power projects (IPPs) are required to offer a minimum 35 per cent of their share capital to the public through the IPOs within four years of the incorporation of the company.
Speaking to Muscat Daily, Yaqoob Saif al Kiyumi, chief executive officer of OPWP said there are six IPOs in the pipeline to be launched in next two years by the developers of water and power projects.
'We have three power plants – Musdandam, Ibri and Sohar – that should be launching their IPOs between this year and next year. Also, as many as three independent water projects will be coming with their IPOs in next two years,' Kiyumi said.
He said that the listed power and water sector companies currently account for around RO450mn of market capitalisation at the Muscat Securities Market (MSM).
'The IPOs of power and water companies have always been a good catalyst for Oman's capital market. These firms provide good stability in the market and good income for their shareholders. They have been helping to build the confidence in the market,' Kiyumi added.
OPWP, a member of Nama Group, is the single buyer of power and water capacities from all independent power and independent water projects within the sultanate.
To meet an expected five per cent annual growth in power demand, OPWP expects total contracted power capacity to grow to 10,804MW by 2021 from 8,714MW in 2018. The company expects Oman's water demand to grow by seven per cent annually and contracted water production capacity to reach at 1.8mn cubic meters per day by 2021 from 1.27mn cubic metres per day in 2018.
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