DUBAI: Shares in Omani power firms Al Suwadi Power Co and Al Batinah Power Co will begin trading today after their initial public offerings (IPOs) were both multiple-times oversubscribed by investors.
The two electricity-generating companies — which had been owned by a consortium of international and local investors — each offered a 35 percent stake to the public in offerings worth a combined RO62.7m($162.9m). However, they received total orders worth RO668.1m during the offer period, which ran from May 11 to June 9, a statement from the firms said yesterday.
Al Suwadi Power Co was raising RO32.5m through the sale of 250 million shares priced at RO0.13 each, and achieved subscriptions worth 10.5-times the target amount. Al Batinah Power Co’s offering of 236 million shares at RO0.128 each was aimed at generating RO30.21m, and was covered 5.56-times. “The long-term agreements with the government of Oman that underpin the profitability of both companies, the strength of the project partners and the attractive pricing of the IPOs proved a hugely successful combination,” said Przemek Lupa, chief executive of Al Suwadi Power.
Al Suwadi Power Co runs a 750 megawatt plant in Barka, north of the capital Muscat. Al Batinah Power Co operates a plant of the same size in the northern city of Sohar. Under Omani regulations, power plants majority-owned by foreign investors must conduct an IPO within five years of commencing operations. Both started up in April 2012. Both firms were owned by a consortium comprising GDF Suez with 46 percent, local firm Suhail Bahwan Group with 22 percent, Japan’s Sojitz Corp and Shikoku Electric Power Co, each with 11 percent, and Oman’s state pension fund with 10 percent. Reuters