(MENAFN - Muscat Daily) Regional analysts have strongly recommended the initial public offerings (IPOs) of Al Batinah Power Co SAOG and Al Suwadi Power Co SAOG.
Analysts highlighted the stable business profile, attractive dividend yields and proven track record of the group of founding shareholders as key factors underpinning the positive investment case for both IPOs, a press release said.
Przemek Lupa, CEO of Al Suwadi Power, said, ''These recommendations are a powerful confirmation of the strength of the offerings. The analysts have provided a very positive feedback for both offerings. They believe that the offerings are attractively priced and have recommended a buy with a potential upside of between nine per cent to 37 per cent from the offered IPO price. Such a positive consensus is obviously pleasing and also reflects the sentiment of the investors we've met so far, both Omanis and non-Omanis.''
Jrgen De Vyt, CEO of Al Batinah Power, said, ''We're confident that potential investors will also recognise the attractiveness of these IPOs, not only in terms of expected returns, but also the wider commercial story “ the sector opportunity, the robust business model, and our highly experienced partners.''
Al Batinah Power is offering 236,210,601 shares at 128bz per share “ inclusive of a nominal value of 100bz, share premium of 26bz and issue expense of 2bz - totalling RO30.2mn.
Al Suwadi Power is offering 250,042,219 shares at 130bz per share - comprising a nominal value of 100bz, share premium of 28bz and issue expense of 2bz - totalling RO32.5mn. Both IPOs represent an offer of 35 per cent of the share capital of each company.
The shares are being sold by current shareholders to comply with the obligations in the project founders agreement signed with Electricity Holding Co (EHC).
The IPOs will close on June 9, and application forms are available for collection at all branches of the subscription banks: Bank Muscat, BankDhofar, National Bank of Oman, Oman Arab Bank, Bank Sohar, and Ahlib