Oman: Sohar Power IPO oversubscribed 21 times

The initial public offer (IPO) of Sohar Power Company (SPC) successfully closed on July 30. In total 9,730,000 SPC shares, representing 35% of the company's equity, were sold at the price of Omani Rial 1.350 (approx. USD 3.51) for a total of USD 35 mln. The listing on the Muscat Stock market will occur within the next two weeks after allocations have been made and oversubscriptions have been refunded.
The shares, which were offered primarily to individual investors in the Omani capital market, attracted overwhelming demand from institutional investors as well – pension funds, insurance companies, mutual funds, and investment funds.
The total subscription was in excess of RO 280 mln (USD 725 mln), about 21 times oversubscribed, which makes the SPC IPO the most successful issuance ever in the power sector in Oman. The offering also attracted applications from international and regional investors which further demonstrates the high investor confidence in the company's prospects.
Following the IPO, GDF Suez Energy International owns 45% of the company's equity. The four Omani partners and founders – Sogex Oman Co., The Sultanate of Oman Ministry of Defense Pension Fund, WJ Towell & Co. and Zubair Corporation – own another 20% of the company's equity. Institutional and individual investors hold the balance 35%.
"The success of the IPO illustrates the confidence of the Omani public and the larger investors' community for well structured and profitable projects promoted by GDF Suez Energy International in association with its local partners," said Dirk Beeuwsaert, CEO of GDF Suez Energy International.
"With an oversubscription of 21 times, the success of the IPO has exceeded our most optimistic expectations, especially considering the prevailing difficult financial market conditions," added Guy Richelle, CEO of GDF Suez Energy.
SPC is the largest power generating company among private generators in Oman with 585 MW of power capacity and 150,00 cu.m. per day of water capacity.
In the Middle East, GDF Suez will now have a direct equity interest in over 13,500 MW and more than 2 mln cu.m. of water per day making it the leading private power developer in the Gulf region. Total investment cost for Middle East assets is USD 11 bln.