Muscat City Desalination Company (MCDC), which closed its OMR6.5 million-initial public offering (IPO) on December 18, has attracted a whopping OMR122 million from investing public and institutional investors on the Muscat bourse. This indicates a heavy oversubscription of 19 times.

Small investors, who are the first category and applied for a maximum of 500,000 shares, will get a minimum of 1,000 shares and 3.1 per cent for all additional share applications. The institutional investors will get 4.14 per cent of the shares they applied for.

The Capital Market Authority (CMA) has approved the allocation ratio of shares of Muscat City Desalination Company taking into consideration the huge response to the share offer.

Mohammed Said Al Abri, Vice President for Capital Market Sector at CMA, said the market regulator gave an opportunity to small investors to invest in the Muscat Securities Market (MSM) to avoid concentration of holdings, which will help to widen the investor in the capital market.

Al Abri said the huge subscription shows the desire of investors to avail opportunities by investing in attractive companies.

He added that such response is a positive indication of the confidence in the market and an indication of existence of ample liquidity which should be tapped for stimulating the national economy by investing in projects. This will provide job opportunities for Omani youths besides benefiting the economy.

Al Abri said that CMA encourages all investors to focus on long term investment to achieve better benefits, especially when the issue is employing huge funds in investment activities which have impact on the national economy and realise attractive returns.

Muscat City Desalination Company has offered 35 per cent of the holdings of promoters (OMR6.5 million) in public offering between November 19 and December 18 at a price of 116 baisas per share.