The IPO was opened for subscription on July 1, and will close on July 30.
Though the IPO, DGC is offering 88.9mn shares at an offer price of 259bz per share (comprising a nominal value of 100bz, premium of 157bz and offer expenses of 2bz per share). The IPO represents 40 per cent of the total share capital of the company.
DGC’s CEO, Naif al Awaaid said, “The offer has attracted significant interest amongst the investor community in Oman, which reflects the key highlights of the offering: An attractive and robust sector, strong and reputed founding shareholders, steady and reliable cash flows unrelated to power demand, and a dividend yield that compares well to the peers in the industry.”
The company, alongside the issue manager Bank Dhofar - investment banking division and global coordinator and bookrunner, EFG Hermes UAE held a roadshow on Wednesday to attract investors.
The roadshow’s attendees included a broad range of investor groups, media persons and representatives of brokerage houses. The senior management of DGC along with representatives of promoter groups were also present on the occasion.
On a query related to listing, Javed Mustafa, chief financial officer at DGC said, the company plans to list shares on the Muscat Securities Market on August 15, around two weeks after the closing of the issue.
Speaking about the strength of the company Awaaid said, “DGC has the backing of its project founders with an established track record in the global and regional power industry.”
The promoters of DGC are Japan-based Mitsui & Co Ltd, ACWA Power and Dhofar International Development & Investment Holding Company (DIDIC). Post IPO, promoters will continue to remain shareholders of the company with an aggregate holding of 60 per cent to ensure reliable management and governance of the company, Awaaid said.
Company officials also informed that currently, Mitsui & Co and ACWA Power has 45 per cent of shares each in DGC, while remaining ten per cent of shares are held by DDIC.
Post IPO, Mitsui & CO and ACWA Power shares will be around 27 per cent each while that of DDIC will be around six per cent, Mustafa said.
With a combined capacity of around 718MW, DGC is the largest power generator in Dhofar region.