Oman desalination major completes first phase of IPO

Barka Desalination Company (BDC) has announced the successful close of the first phase of its IPO for listing on the Muscat Stock Exchange (MSX).

Based on the price discovery process completed through book building by large and institutional investors, the allotment price for shares has been determined at 145 baisa at the highest end of the price range of 115-145 per share.

The company previously said it will offer 40 percent of its share capital to the public through the IPO.

Phase one of the IPO, being managed by Bank Muscat, received a strong response with an oversubscription of 4.83 times of offer shares, a statement said.

It added that the investors included a cross-section of Oman’s leading corporates, banks, insurance companies, asset management companies, sovereign entities, pension funds, as well as high net worth individuals.

As anchor investors to the IPO, each of National Power and Water Co, an investment arm of Bahwan Engineering Group, and Bank Muscat had provided commitments to invest up to 10 percent of the IPO at 145 baisa per share.

“The interest from institutional and large investors demonstrates the strong interest in this offering from the investor community in Oman as an attractive offering,” the company said in the statement.

Phase two of the IPO, where shares will be offered to retail investors at the price of 145 baisa, opens for subscription from Tuesday until February 14.

Patrick Thienpont, CEO of BDC, said: “We are extremely pleased with the success of phase one of the IPO, which is a positive indication of the confidence in the industry and market in BDC.

“Retail investors now have the advantage to see the strong response from the large investors and can now apply to become part of the success story of Barka Desalination.”

Bank Muscat Investment Banking, Oman’s largest investment banking team, is the financial advisor and sole issue manager for the IPO transaction.

Source:https://www.arabianbusiness.com/gcc/oman/oman-markets/oman-desalination-major-completes-first-phase-of-ipo

H.E. Minister of Commerce and Industry meets Malaysian Prime Minister’s Special Envoy to the Middle East

His Excellency Sheikh Mohammed bin Hamad bin Qassim Al Thani, Minister of Commerce and Industry, met with His Excellency Mr. Abdul Hadi Awang, the Malaysian Prime Minister’s Special Envoy to the Middle East, who is currently visiting Qatar.

During the meeting, the officials touched on the bilateral relations between the two countries in the commercial, industrial, and investment fields, as well as ways to enhance and develop them. The officials discussed aspects of joint cooperation between the two sides.

His Excellency the Minister of Commerce and Industry highlighted the economic policies Qatar has put in place to support the private sector, and pointed out the incentives, legislation, and promising opportunities that encourage foreign investment for companies wishing to participate in Qatar’s economy.

Source:https://www.moci.gov.qa/en/mec_news/h-e-minister-of-commerce-and-industry-meets-malaysian-prime-ministers-special-envoy-to-the-middle-east/

Oman set to extend economic reforms as finances stabilise after Covid shock

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Oman is set to extend an economic overhaul that has helped to stabilise the finances of the weakest Gulf state, according to its foreign minister.

“Our fiscal position is now sound and improving,” Sayyid Badr bin Hamad Albusaidi said in a podcast hosted by Al-Monitor.

“This gives us really a solid foundation to make real progress toward some of the perhaps ambitious economic goals we have set for ourselves in the vision,” he said, referring to Vision 2040, an economic blueprint.

Since taking power in January 2020, Sultan Haitham bin Tariq has moved to balance Oman’s finances and prepare it for a time after oil.

The effort included cutting subsidies, introducing a value-added tax and even planning for income tax – which would be a first for a Gulf Arab state.

Oman’s cost-cutting steps along with a rally in oil prices helped the sultanate return to global debt markets. Some rating agencies have raised their outlook for the country.

“Our fiscal position is now sound and improving,” Sayyid Badr bin Hamad Albusaidi said in a podcast hosted by Al-Monitor.

“This gives us really a solid foundation to make real progress toward some of the perhaps ambitious economic goals we have set for ourselves in the vision,” he said, referring to Vision 2040, an economic blueprint.

Oman joins Gulf neighbours as it implements 5% VAT

Since taking power in January 2020, Sultan Haitham bin Tariq has moved to balance Oman’s finances and prepare it for a time after oil.

The effort included cutting subsidies, introducing a value-added tax and even planning for income tax – which would be a first for a Gulf Arab state.

Oman’s cost-cutting steps along with a rally in oil prices helped the sultanate return to global debt markets. Some rating agencies have raised their outlook for the country.

Future reforms will look at subsidies, public-sector employment and the provision of safety nets, while “developing ways for those who enjoy the privileges of relative wealth to make an appropriate contribution to the common good,” the foreign minister said.

A “renewed emphasis on inclusion will contribute to making Oman an even more attractive and more desirable location for foreign business and investments,” he said.

Source:https://www.arabianbusiness.com/politics-economics/oman-set-to-extend-economic-reforms-as-finances-stabilise-after-covid-shock