DGC IPO at­tracts strong re­sponse from in­vestors

Oman Daily Observer - - INSIDEOMAN -

MUS­CAT: Fol­low­ing the suc­cess­ful launch of the Ini­tial Pub­lic Of­fer­ing (IPO) of Dho­far Gen­er­at­ing Com­pany (DGC), in­vestor in­ter­est is gath­er­ing mo­men­tum.

The com­pany held a road­show meet­ing with key in­vestors, an­a­lysts and bro­ker­ages. The meet­ing, which was held in Mus­cat was well at­tended by in­sti­tu­tional in­vestors and high­net worth in­di­vid­u­als. Se­nior of­fi­cials of the com­pany, in­ter­acted with in­vestors and an­a­lysts and pro­vided in­sights into the var­i­ous as­pects of the of­fer.

Speak­ing at the event, John Clark, Board Chair­man of DGC, said, “DGC (Salalah II IPP) com­prises two power gen­er­a­tion plants with a com­bined ca­pac­ity of 718 MW and is the largest power pro­ducer in the Dho­far Gover­norate.

DGC has al­ready es­tab­lished a rep­u­ta­tion for ex­cel­lence with the com­mer­cial op­er­a­tion of the 445 MW power plant as per sched­ule.

Dis­cussing the pos­i­tive re­sponses to the IPO, Naif al Awaaid, CEO of DGC, said: “DGC has the back­ing of its Project Founders with an es­tab­lished track record in the global and re­gional power in­dus­try. The project founders, Mit­sui, ACWA Power and Dho­far In­ter­na­tional De­vel­op­ment and In­vest­ment Hold­ing Com­pany will re­main share­hold­ers post-ipo, with an ag­gre­gate hold­ing of 60 per cent and they will con­tinue to en­sure re­li­able man­age­ment and gov­er­nance of the com­pany. We are very pleased with the strong in­ter­est and en­thu­si­asm sur­round­ing the IPO of DGC”.

DGC is of­fer­ing 88,896,000 shares at baisa 259 apiece. The IPO rep­re­sents an of­fer of 40 per cent of the share cap­i­tal of the com­pany.

At the IPO price, the com­pany of­fers an av­er­age pro­jected div­i­dend yield of 7 per cent for the first five years (ex­clud­ing is­sue ex­penses).

The first div­i­dend of baisa 9 per share is ex­pected to be paid in Fe­bru­ary 2019 and baisa 9 per share to be paid in Au­gust 2019 with twice yearly div­i­dend dec­la­ra­tion there­after. The IPO will close on July 30.

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