Muscat: Dhofar Generating Company, the largest power producer in the Dhofar region, today announced the successful closure of its initial public offering and listing on the Muscat Securities Market (MSM). The subscription period for the issue ended on 16 August 2018.
Bank Dhofar – Investment Banking Division is the ‘Issue Manager’ and EFG Hermes UAE Limited is the ‘Global Coordinator and Bookrunner’ for the transaction.
The RO 20 million offering, was comfortably oversubscribed and attracted demand from both retail and institutional investors across the country, making it the first successful IPO in 2018. The IPO was overall subscribed 1.37 times, with Category I (i.e. upto 100,000 shares) being subscribed 0.50 times and Category II (i.e. greater than 100,100 shares) being subscribed 2.99 times. Investors who applied for 100,000 or less shares have been allotted 100%. The Category II investors who applied for 100,100 shares or more were allotted 64.62% of their application.
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% 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 capitalization of RO 50 million. Trading of the company’s shares commenced on the Muscat Securities Market on 5 September 2018.
Commenting on the successful close of the IPO, Mr. Naif Al Awaaid, CEO of DGC said: “We are proud and delighted by the response we have received from such a wide range of investors in Oman. 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.”
Speaking at the listing ceremony held at the Trading Hall at MSM, Naif added, “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.”
“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.”
Senior officials from CMA, MSM and MCD attended the event, and the company presented them with mementos expressing their gratitude. DGC also recognized the work of IPO partners and in appreciation presented them with tombstones earmarking the transaction.