Oman-based Shadeed Iron and Steel, part of the $12bn Indian conglomerate Jindal Group, announced it will open its rolling mill for rebar manufacturing by the end of this year.
The rolling mill, with a capacity of 1.4m tonne per year, is being set up at a cost of $200m. Shadeed is currently waiting to float its initial public offering (IPO) on the Muscat Securities Market (MSM), and will float its shares after the market has recovered.
N. A. Ansari, chief executive officer of Shadeed told local daily Times of Oman: "There is a major fall in prices of steel in the last nine months. We are waiting for the market to improve before we proceed (with the IPO)."
Ansari said the purpose of the initial public offering is to install certain equipment for further reducing the cost of production and increase capacity.
"Valuation of the company again depends on the market scene," Ansari added, as per the report.
He said the proposed issue will be by way of a dilution of stake by promoters and enhancement of the company's capital. Ansari said the steel melting shop, which was commissioned last year with a capital expenditure of $400m, produces steel billets and rounds.
Shadeed Iron and Steel is the first integrated steel plant of a large capacity in the country, which is helping Oman to meet its domestic demands in semi-finished steel, including square and round billets and blooms, finished steel, rebars and wire rods.