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Wed, 10 Feb 2010 | 11:03 GMT
Wed, Feb 10, 2010, 11:03 GMT
 

Sohar Power Initial Public Offering collects RO280m

 Times of Oman
 
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05 August 2008
MUSCAT -- The RO13.33-million Initial Public Offering (IPO) of Sohar Power CompanySohar Power CompanyLoading... (SAOG), which closed on July 30, has been over-subscribed by over 21 times, collecting in excess of over RO280 million.

SPCSPCLoading..., which has a paid-up capital of RO27.3 million, offered 9.73 million shares of the company to the public at an offer price of RO1.370 per share, which included a nominal value of RO1, a premium of 350 baisa and an issue expense of 20 baisa.

The IPO received an overwhelming response from retail as well as institutional investors with over 40,000 applications for its 9,730,000 shares on offer.

This makes SPCSPCLoading... IPO as the most successful issuance ever in the power sector in Oman. The offering also attracted applications from international and regional investors which further reinforces the high investor confidence in the company's prospects. The issue comes close on the heels of Voltamp EnergyVoltamp EnergyLoading... offer which was oversubscribed by 24.3 times.

As per BankMuscatBankMuscatLoading..., lead manager to the issue, the subscription for category 1 (small investors who have applied upto 4,000 shares) was 14.89 times while the subscription for the large investor category (greater than 4,000 shares per application) was 39.82 times. These numbers are subject to final reconciliation. The allocation of shares will be done on a pro rata basis in accordance with the prospectus after accounting for oversubscription separately in both categories.

"We are pleased with the success of our IPO. We are committed to building shareholder value and want the public to be associated with and benefit from strategically important economic activity," said Murtadha Ahmed Sultan, chairman of SPCSPCLoading....

The proceeds from the issue (including the premium) shall accrue to the current shareholders in the ratio of shares offered as the promoters of company are divesting 35 per cent of their holding to the public as part of their contractual obligation with the government to dilute their stake within four years of incorporation. Post-IPO the promoters' stake will come down to 65 per cent.

AbdulRazak Ali Issa, chief executive of BankMuscatBankMuscatLoading..., lead manager to the issue, said: "We at BankMuscatBankMuscatLoading... are delighted at the success of the SPCSPCLoading... IPO in Oman and thank the investors for subscribing in such large numbers. We thank the CMA for its continued support. Despite the large number of applications and subscriptions, we expect to complete the allotment process within the stipulated time as per the prospectus."

SPCSPCLoading... is the largest power plant under operation in Oman. SPCSPCLoading... was incorporated on July 17, 2004 to construct and operate a 585MW of power and 150,000 cubic metre per day of desalinated water plant at the Sohar Industrial Port area. The plant commenced commercial operations on May 28, 2007, becoming the largest power and desalination facility operating in the Sultanate of Oman, representing close to 20 per cent of the installed capacity of the country.

Sohar Power CompanySohar Power CompanyLoading... enjoys the strong experience of its founders who pioneered private power generation in Oman. SPCSPCLoading... is promoted by GDF Suez Energy International, National Trading CompanyNational Trading CompanyLoading..., SOGEX Oman Company, MOD Pension Fund, W.J. Towell & Co and Zubair Enterprises.

© Times of Oman 2008

 
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