Reuters has announced that Sembcorp Salalah Power and Water Co, a company that owns and operates the US$1 billion Power and Water Plant (IWPP) in Oman, plans to raise $138 million by offering 35 percent of its share capital on the Muscat bourse.

The IPO will be launched on Wednesday and the first day of trading is expected to be around October 10.

The company is 60 per cent owned by Sembcorp Utilities, 35 per cent owned by Oman Investment Corporation (OIC) and 5 per cent owned by the Bahrain-based BDCC Investment Company.

The company will offer 33.4 million existing ordinary shares at a price of 1.59 rials per share. This would be worth 53 million rials ($137.66 million). The statement did not disclose what amount of shares the existing shareholders were each selling in the IPO.

Sembcorp Utilities, a unit of Sembcorp Industries, has a 60 percent stake in the Sembcorp Salalah Power and Water Company. Oman Investment Corp owns 35 percent and Instrata Capital 5 percent in the joint venture.

The Salalah Independent Water and Power Plant consists of a gas-fired combined cycle power plant with a gross capacity of 490 megawatts and a seawater desalination plant with a total water production capacity of 69,000 cubic metres per day, according to its website.

The offer runs until September 26. HSBC Holdings' Middle Eastern arm is the sole global coordinator and bookrunner for the issue.