The Omani Electricity Transmission Company has halted its plans for an initial public offering (IPO) and is now considering raising funds through the issuance of dollar-denominated bonds, according to informed sources. The state-owned company is expected to begin meetings with investors in the United States and the United Kingdom this week to gauge interest in the potential bond issuance.
The company is working with major financial institutions such as Citigroup and Oman Investment Bank, along with other financial advisors, to structure the bond issuance. However, final decisions regarding the size and timing of the issuance have yet to be made. Bloomberg data indicates that the company has bonds worth $1 billion due in May, as well as another $500 million in bonds due in 2027. It had previously published a green financing framework that includes various financial instruments such as bonds, sukuk, and loans.
This shift to international debt markets comes after the company's shareholders decided to delay the planned listing, reflecting a slowdown in the pace of IPOs in Oman and the Gulf, despite the recent strong momentum in subscription offerings. The Oman Investment Authority, the company's largest shareholder, had previously enlisted Lazard Investment Bank to manage the IPO process.
The Chinese government-owned network holds a 49% stake in the Omani Electricity Transmission Company, a share it acquired in 2019 as part of one of the first major privatization efforts in the Sultanate, valued at $2 billion at the time.
The relevant parties, including representatives from the Omani Electricity Transmission Company, the Chinese government network, Lazard, Citigroup, and Oman Investment Bank, declined to comment on these developments.
This move comes as Oman seeks to sell stakes in 30 state-owned companies as part of its plan to strengthen the private sector and finance its energy transformation. Last year, two companies affiliated with the state-owned OQ energy group raised $2.5 billion through IPOs, pushing Muscat’s IPO market ahead of London. However, some listings faced difficulties later, prompting the government to reassess its privatization strategy.
Although Oman’s privatization program remains behind that of Saudi Arabia and the UAE, which have been active in developing local equity markets to attract foreign investment, this step reflects a shift in financing policies, with a greater move towards debt instruments as an alternative means of raising capital.
