SMN Power Holding's initial public offering, the only IPO in Oman in 2011 so far and one of the few in the region this year attracted strong interest from investors. The issue collected OMR 40.9 million against the target size of OMR 24.6 million.

Accordingly, the initial public offering which opened for subscription between September 11th and October 10th 2011 has been subscribed 1.7 times. Amid uncertain market conditions and generally negative global business sentiments the success of the share offer reflects the inherent strength of Oman's power sector and SMN Power in particular.

Mr Mahinder Nath the chairman of SMN Power while paying tributes to the Omani authorities said that "We want to thank the Capital Markets Authority and all other parties involved for their cooperation and professionalism. This is another demonstration of the solid business environment and the stable regulatory framework the Government of Oman has succeeded in creating following the vision of His Majesty Sultan Qaboos bin Said."

Mr Jean Francois Roberge vice chairman of SMN Power said that "The successful completion of the SMN Power IPO is a rewarding moment for the company and its founder shareholders. It shows that investors appreciate our company's strong fundamentals and the value embedded in its cash flows, supported by a robust contractual framework. I am confident that we will continue to create value for all our shareholders both in the medium term and long term. I would also like to thank BankMuscat for having successfully executed the issue in these challenging times."

Retail investors with application of up to 5,000 shares will receive 100% of the shares subscribed by them while the large investors with application of more than 5,000 shares will receive 55.8% of the shares subscribed by them. The process of refunds to large investors is completed while the shares of SMN Power will be listed on Muscat Securities Market on Sunday. Based on the offer price the initial market capitalization of the company will be OMR 70 million.

Mr AbdulRazak Ali Issa CEO of BankMuscat said that "We are proud to have successfully executed the IPO of SMN Power. The achievement strengthens our track record of successful transactions despite adverse market conditions. We are grateful to the investors who have placed their trust in the IPO and SMN Power. We would also like to thank the Capital Markets Authority for their guidance and continued support for the transaction."

(Sourced from Times of Oman)