News Column

Omani power firms\ IPO oversubscribed

June 22, 2014

ArabianBusiness.com Staff



The IPOs for a pair of independent power projects in Oman have both successfully closed, with both share issues being massively oversubscribed.

Al Suwadi Power Co, which owns and operates the Barka 3 plant, was more than ten-times oversubscribed. Meanwhile, the subscribtion demand for shares in Al Batinah Power Co, which operates the Sohar 2 plant, was more than 5.5 times the amount issued.

Both firms offered 35% of their total shares under a deal agreed with the Omani government, with whom they each have a 15-year supply deal.

Prior to the IPOs, they were owned by GDF Suez (which had a 46% stake), Multitach (22%), Sojitz Corporation (11%), Shikoku Electric Power Co (11%) and Oman'sPublic Authority for Social Insurance (10%).

Przemek Lupa, CEO of Al Suwadi Power, said: "We are delighted with the level of interest that the IPOs have generated in Oman and the region. We look forward to welcoming our new institutional and individual investors as part of our companies."

The IPOs were led by Bank Muscat.

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Both plants have been operating since April 2013 and between them have increased Oman's generating capacity by 25%. 

The two coastal, combined cycle gas turbine plants generate around 744MW each.

 


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Source: Construction Week (United Arab Emirates)


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