Sembcorp Salalah launches IPO
Subscription is now open for Oman?s biggest IPO so far in 2013
Sembcorp Salalah Power & Water Company launched its Initial Public Offering (IPO) of 33,410,019 existing ordinary shares, representing 35 per cent of the issued share capital of Sembcorp Salalah. Shares are priced at US $4 per ordinary share. The IPO is now open for subscription until 26 September 2013.
The IPO is expected to raise around US $138mn, which would make it the biggest share offer in Oman so far in 2013. The existing shareholders, Sembcorp Utilities, Oman Investment Company (OIC) and BDCC Investment Company, are required to undertake this IPO and make 35 per cent of the company’s shares available to the public as the IPO is a condition under the Project Founders’ Agreement
Commenting on the launch, Lim Yeow Keong, chief executive officer of Sembcorp Salalah, said, “We are pleased to offer the public the unique opportunity to invest in Sembcorp Salalah. With an established operation backed by strong government support, our company allows our shareholders to benefit from a stable business model and strong predictability of cash flows, as well as future growth opportunities. It’s a very exciting time for us as we look forward to welcoming new shareholders into the company.”
Tang Kin Fei, group president & CEO of Sembcorp Industries and chairman of Sembcorp Salalah, said, “We are delighted to launch the next stage in Sembcorp Salalah’s development now that we have successfully delivered this plant, which is expected to play a major role in meeting the region’s growing power and water demand for many years to come. Sembcorp Salalah is a world-class operator that benefits from the proven track record of Sembcorp as an established developer, owner and operator of large-scale power and water projects worldwide, and the regional knowledge and experience of OIC. As a long-term shareholder of the company, we look forward to welcoming new shareholders on board with us.”
Kalat Al Bulooshi, CEO of OIC and deputy chairman of Sembcorp Salalah, commented, “Sembcorp Salalah makes a valuable contribution to Oman through the provision of power and water to the people of Dhofar. This IPO is a great opportunity for Omanis to own a part of the Company, and to be an integral part of the future of both Sembcorp Salalah and the development of Dhofar.”