Musandam Power expected to launch IPO before year-end

Wednesday, 29 August 2018

Musandam Power Company is expected to launch its initial public offering (IPO) before the end of this year, according to a senior official of the Capital Market Authority (CMA).

Musandam Power is Oman Oil Company’s majority owned subsidiary, which operates an independent power plant in Musandam governorate.
“We hope to see the IPO of Musandam Power before the end of the year. Musandam Power is a company of Oman Oil and it would be really good for the market to have this IPO,” H E Abdullah bin Salim al Salmi, executive president of the CMA told Muscat Daily.

Musandam Power was established by a consortium comprising of Oman Oil (holding 70 per cent of shares) and LG International Corporation (holding 30 per cent of shares). Oman Oil’s wholly-owned subsidiary Oman Oil Company Exploration and Production LLC had inaugurated Musandam independent power plant in November last year in Wilayat of Bukha in Musandam.


Musandam Power had signed a power purchase agreement with Oman Power and Water Procurement Company (OPWP). Under the agreement, OPWP will purchase the electrical power capacity produced from the plant for a period of 15 years. The plant’s 120MW net output capacity supports demand growth in Musandam Governorate.

Earlier in January, Eng Yaqoob Saif Hamood al Kiyumi, CEO of OPWP had said that six power generation and water desalination companies will launch their IPOs to list on the Muscat Securities Market (MSM) within three years. Out of these six projects, four IPOs will be from power sector and two from water sector, he had said.

Dhofar Generating Company, which operates a major power plant in Dhofar region, recently closed the subscription for its initial public offering.