DGC IPO attracts strong response from investors
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.