Omani utility to launch IPO

Omani utility to launch IPO

Published: August 22, 2013

Local power and water company Sembcorp Salalah plans US$137.7mn offering.

Sembcorp Salalah Power and Water Company, an Oman-based utility, plans to launch an initial public offering (IPO) on the Muscat Securities Market worth OMR53mn (US$137.7mn).

The company will float 33,410,019 shares, representing about 35% of its ordinary share capital and giving it a market capitalisation will be US$394.8mn. Lim Yeow Keong, CEO of the company, described the deal as a “unique proposition that provides potential investors with access to an established operator with strong government support and stable revenues”.   

The offer will run from August 28 to September 26. Global coordinator and bookrunner on the deal is HSBC Middle East while HSBC Oman will act as issue manager.

Sembcorp Salalah owns and operates the Salalah Independent Water and Power Plant, a combined power generation/water desalination plant running since May 2012. The plant supplies 72% of the power and 100% of the net installed water capacity for the Dhofar Governorate, the largest of Oman’s eleven governorates.

Combined power/water plants are common throughout the Middle East and growing numbers are looking for financing. Last month, Abu Dhabi's Ruwais Power Company, which owns the Shuweihat 2 plant, raised US$825mn in 23-year bonds.