Barka Desalination’s IPO generates strong investor and analyst interest

Barka Desalination’s IPO generates strong investor and analyst interest

The company, alongside the issue manager – Bank Muscat Investment Banking, has been holding several meetings with key investors for Phase I of the IPO (i.e. Book Building). Meetings were conducted with more than 50 key investors from Oman as well as the region with some meetings being conducted in Muscat while others through a virtual session.

All meetings held in Muscat were conducted while ensuring that all pandemic guidelines including social distancing are being followed.

The investors appreciated several aspects for BDC including a long term off-take agreement until 2038 with the Government of Oman owned OPWP, resilient demand for water in the country and a dividend yield range of 8.4 per cent to 10.6 per cent being offered to IPO investors. They also commended that the project has marquee founders including ENGIE, ITOCHU, SUEZ and W.J. Towell, who have a strong track record and deep commitment to the project.

Investors also appreciated the commitment by two leading names – National Power & Water Co. LLC (an investment arm of Bahwan Engineering Group), and Bank Muscat SAOG to participate in the IPO as anchor investors and confirm their interest at the price of Bzs 145 per share i.e. at the highest end