Following the successful oversubscription of the Initial Public Offer till August 16, the Dhofar Generating Company SAOG (DGC), the largest power producer in the Dhofar Governorate announced its listing on the Muscat Securities Market (MSM). Trading of the company’s shares also began simultaneously.
The IPO which was began early in 2018 was for 40 per cent of its shares to the tune of RO 20 million attracted sound response from both retail and institutional investors across the country resulting in its oversubscription by 1.37 times. Up to 100,000 shares were subscribed 0.50 times while category 2 which is for above 100,000 shares subscribed 2.99 times. Investors who applied for 100,000 or less shares have been allotted 100 per cent. The Category II investors who applied for 100,100 shares or more were allotted 64.62 per cent of their application.
“This (successful IPO and MSM listing) is a milestone that we achieved today, after several milestones such as design, construction, and commissioning and we are highly optimistic and positive about the future”, Naif al Awaid, CEO of DGC told the Observer.
“We have a lot of advantages in terms of safety, Omanisation and environment conservation and the like and moving as a public company it will help also in other measures of efficiency and we are glad and happy to see these milestones being added to the DGC”, he added.
Bank Dhofar — Investment Banking Division is the ‘Issue Manager’ and EFG Hermes UAE Limited is the ‘Global Coordinator and Bookrunner’ for the transaction.
“With the sounding of the opening bell, DGC will open a new chapter in its remarkable journey of success. And with it, the company will reinforce its commitment — to our new shareholders, employees, our partners, the community we serve in Dhofar, and the wider people of Oman — to continue to support individuals, businesses and the economy in further progress of this great nation”, Al Awaid added.
In order to encourage enhanced retail participation, active trading in the shares of DGC on listing and long term commitment to Oman, DGC and its founder international shareholders: Mitsui & Co Ltd, ACWA Power and Omani shareholder DIDIC had decided to offer more value to investors participating in its IPO with a revised price of Bzs 225 per offer share on the entire offering of 88,896,000 shares. This translated into a higher dividend yield of 8 per cent for the first five years (including issue expenses). The CMA had kindly consented to this move and approved the extension of the issue up to August 16, 2018.
The offer price of Bzs 225 per share implies an opening market capitalisation of RO 50 million.
“The strong support and warm welcome we have received reflects the confidence in DGC’s strategic role in the utilities industry in Oman, and the commitment of the founding shareholders. We welcome our new institutional and individual investors into the DGC family”, Al Awaid adds.
“We would like to thank all our IPO partners for managing the IPO and making this issue a success in spite of the challenging market conditions. We would also like to extend our special thanks to the Capital Market Authority for their continued support and guidance.”