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Monday 14 June 2021
HomeWorldOman power firms soar on debut listing

Oman power firms soar on debut listing

Shares in Omani power firms – Al Suwadi Power Company and Al Batinah Power Company – surged on their debuts on Monday after heavily oversubscribed initial public offer.

Al Suwadi jumped 25 per cent to 0.163 rials and Al Batinah also rose 25 per cent to 0.160 rials, both around the top of the range of analysts’ fair value estimates.

The companies’ stable and predictable cash flow makes them attractive medium- and long-term plays for low-risk appetite investors, and subscription figures indicated pent-up demand, Gulf Baader Capital Markets said in a report this month.

Meanwhile, experts believe most Gulf markets will consolidate in quiet trade today because of the usual pre-Ramadan lull.

Dubai’s bourse is likely to remain relatively volatile as investors wait for more updates from Arabtec, the most heavily traded stock in the emirate.

Shares in Arabtec tumbled 43 per cent this month after one of its main shareholders, Abu Dhabi state fund Aabar Investments, reduced its stake in the firm to 18.94 per cent from 21.57 per cent.

The shares stabilised briefly after Arabtec chief executive Hasan Ismaik resigned last week and an Aabar-linked executive became acting CEO, but analysts say investors are still waiting for a clear message from the fund on its strategy. The stock plunged 9.9 per cent on Sunday.

The global market backdrop is positive as Asian stocks rose on strong Chinese factory data, following fresh highs set by Wall Street. However, fresh territorial gains by the insurgents in Iraq over the last 24 hours may continue to deter some Gulf investors from buying stocks.

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