Nama Holding will invite Omani institutional investors to sell shares in Muscat Electricity Distribution Company (MEDC) within the next few days, according to a press release. This will be followed by an initial public offering for retail investors, which will be the second phase of the share offer.
MEDC is a subsidiary of Nama Holding and the share offer to institutional investors is the first phase of the privatisation.
In line with the government’s directives concerning the privatisation of Muscat Electricity Distribution, Nama Holding will start the divestment of a minority portion of MEDC’s share capital through a combination of private placement and an initial public offering (IPO) in association with Ubhar Capital as a financial advisor for the privatisation process, BankDhofar, represented by the Investment banking section for the subscription process and Al Busaidy, Mansoor Jamal & Co. as the legal advisor.
The objective of the privatisation of MEDC is to promote the participation of private sector in developing the main infrastructure of the electricity sector in order to achieve economic development.
Moreover, the privatisation will promote the development of the capital market in the Sultanate and it will increase the investment options available to the local investors.
Muscat Electricity Distribution is a closed joint stock company established as a result of the restructuring of The Electricity and Related Water Sector under the law promogulated by Royal Decree No.78/2004, amended by Royal Decree No. 59/2009 and Royal Decree No. 47/2013, The company is licensed by the Authority for Electricity Regulation, to distribute and supply electricity in the Governorate of Muscat.