DUBAI, June 22 Shares in Omani power firms Al
Suwadi Power Co IPO-ALSP.OM and Al Batinah Power Co
IPO-ALBP.OM will begin trading on Monday after their initial
public offerings (IPOs) were both multiple-times oversubscribed
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 62.7 million rials ($162.9 million).
However, they received total orders worth 668.1 million
rials during the offer period, which ran from May 11 to June 9,
a statement from the firms said on Sunday.
Al Suwadi Power Co was raising 32.5 million rials through
the sale of 250 million shares priced at 0.13 rials each, and
achieved subscriptions worth 10.5-times the target amount.
Al Batinah Power Co's offering of 236 million shares at
0.128 rials each was aimed at generating 30.21 million rials,
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.
($1 = 0.3850 Omani Rials)
(Reporting by David French; Editing by Mark Potter)