Oman utility firm launches $137m IPO
Muscat, August 28, 2013
Oman-based Sembcorp Salalah Power & Water Company, in which a unit of Singapore's Sembcorp Industries has a 60 per cent stake, has launched its IPO offering a total of 33.4 million existing ordinary shares at a fixed offer price of RO1.590.
A leading power and water company based in the Dhofar governorate, Sembcorp Salalah said the issue, which represents 35 per cent of the issued share, is open for subscription until September 26.
The offer is open to individual investors, juristic persons and institutions within Oman, and to non-Omani investors outside of US, Canada, Australia, South Africa, Republic of Ireland and Japan, said a company statement.
The Omani utility group aims to list the shares for trading on the Muscat Securities Market on October 10.
Announcing the launch, CEO Lim Yeow Keong said the IPO is expected to raise around RO53 million ($137 million), which would make it the biggest share offer in the Sultanate so far in 2013.
"With an established operation backed by strong government support, our company allows our shareholders to benefit from a stable business model and strong predictability of cash flows, as well as future growth opportunities. It’s a very exciting time for us as we look forward to welcoming new shareholders into the company," he added.
The existing shareholders, Sembcorp Utilities, Oman Investment Company (OIC) and BDCC Investment Company, will undertake this IPO and make 35 per cent of the company’s shares available to the public as the IPO is a condition under the Project Founders’ Agreement.
HSBC Bank Oman SAOG is the issue manager, while the collecting banks are Bank Muscat, Oman Arab Bank, National Bank of Oman and Bank Dhofar.
Tang Kin Fei, the group president & CEO of Sembcorp Industries and chairman of Sembcorp Salalah, said, "We are delighted to launch the next stage in Sembcorp Salalah’s development now that we have successfully delivered this plant, which is expected to play a major role in meeting the region’s growing power and water demand for many years to come."
Sembcorp Salalah, he stated, was a world-class operator that benefits from the proven track record of Sembcorp as an established developer, owner and operator of large-scale power and water projects worldwide, and the regional knowledge and experience of OIC.
"As a long-term shareholder of the company, we look forward to welcoming new shareholders on board with us," he added.
Oman Investment Company CEO and deputy chairman of Sembcorp Salalah Kalat Al-Bulooshi said, “Sembcorp Salalah makes a valuable contribution to Oman through the provision of power and water to the people of Dhofar. This IPO is a great opportunity for Omanis to own a part of the company, and to be an integral part of the future of both Sembcorp Salalah and the development of Dhofar.”-TradeArabia News Service