Shares of Oman's biggest construction company, Galfar Engineering and Contracting Co, go on sale to the public for the first time on Sunday.

Galfar is looking to raise 60 million rials ($155.9 million) in only the second initial public offering in Oman this year, offering 100 million shares to Omani nationals and the rest to foreigners, according to a prospectus for the sale posted on the bourse's Web site.

'The market won't be much affected by this as institutional rather than retail players dominate,' said Jayesh Shah, head of brokerage at Bank Muscat.

Stock indicies in the Gulf have traditionally declined ahead of and during IPOs as small investors sell to raise funds to purchase IPO shares.

Oman's index is the second best performer in the Gulf this year, up more than 18 percent. It climbed 0.92 percent on Thursday to a record close, paced by Bank Muscat.

Except for Bahrain, which rose 1 percent, Omani stocks were the only gainers in the Gulf last year, when Saudi Arabia, Dubai and Abu Dhabi lost about half their value.

Of the Galfar shares on sale, 60 million belong to three existing holders and the remainder will be new, according to the prospectus. Some of the funds will go towards buying equipment for the company. After the sale, the founders will hold 60 percent of the company and the public the rest.

Galfar, set up in 1972, posted a profit of 8.34 million rials in the five months to May 31, the prospectus says, without giving a comparison. Its order book at the end of last year was worth 450 million rials.

The IPO closes on September 10. - Reuters