Al Suwadi surged as high as 180 basias and Al Batinah peaked to 166 baisas at one point of time.
Market analysts said that the stable and predictable cash flow of these two power companies make them attractive medium- to long-term for low-risk appetite investors, and subscription figures indicated pent-up demand.
"It was a strong listing, better than our expectation. The market liquidity is pretty high," said a market analyst, who does not want to be named. As many as 78.53 million shares of
"The power companies will offer steady returns in the form of dividend. The buyers are mainly institutions, who have long-term perspective and they look for steady returns in the form of dividend," added the analyst.
The institutional demand for the share was pretty high as the institutional segment of the issue was oversubscribed by many times, which clearly shows a pent-up demand for the shares.
The high dividend yield of around 8.1 per cent, against the industry average of 6.1 per cent, is a major factor for the high demand for the shares.
The shareholders of both companies divested 35 per cent of their holding, aggregating to
Al Batinah Power IPO was offered at 128 baisas per share, while
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