Dhofar Generating Company plans IPO

Dhofar Generating Company (DGC) SAOG (Under Transformation), owner and operator of the Salalah II Independent Power Project (IPP), says it is planning to launch its Initial Public Offering (IPO) soon. As stated in the Project Founders’ Agreement, the company is required to offer 40 per cent of their Share Capital to the public through an IPO. Accordingly, DGC intends to offer 88,896,000 existing shares through listing on the Muscat Securities Market (MSM). The founders of the Company are well reputed global leaders with an established track record in the global and regional power industry: Mitsui & Co, Ltd., ACWA Power and Dhofar International Development & Investment Holding Company SAOG.
Bank Dhofar’s Investment Banking Division is the ‘Issue Manager’ and EFG Hermes UAE Limited is the ‘Global Coordinator and Bookrunner’ for the transaction. The Salalah II IPP comprises of two power generation plants with a combined contracted capacity of 718 MW, located at Raysut in the Dhofar Governorate of the Sultanate of Oman. The original plant, which commenced commercial operations in 2003 has a contracted capacity of 273 MW. A second new 445 MW plant was developed by DGC with commercial operations as per schedule on January 1, 2018. Achieving commercial operation date as per schedule is a truly remarkable achievement in the sector throughout the governorate, the company said. This accomplishment would not have been possible without the diligent efforts of all stakeholders, it stated. The Company is now the largest power supplier in the Dhofar Governorate, with its total contracted power capacity representing approximately 61.74 per cent of the total contracted capacity in the Dhofar Power System IPP sector.
The Company currently generates its revenues pursuant to a 15 year Power Purchase Agreement (PPA), maturing on January 1, 2033, with Oman Power And Water Procurement Company SAOC (OPWP), which is indirectly wholly-owned by the Government. The power capacity of the Company is fully contracted to OPWP and will be used to meet the growing power demand in the Dhofar Governorate during the term of the PPA and beyond.
Commenting on the proposed IPO, John Clark (Chairman of DGC) said: “This is a very important milestone for DGC. The Company has been successfully powering the Dhofar Governorate since its inception in 2003 and has now become a major player in the governorate with commercial operation of the new 445 MW plant on January 1, 2018. With high reliability, we ensure that Dhofar and its people and businesses remain continuously empowered to ensure their sustained progress under the able leadership and Government of His Majesty Sultan Qaboos. We are delighted to now offer the public in Oman the opportunity to participate in our journey of success. The IPO is a unique opportunity for an investment in the governorate’s largest power plant in operation.” Naif al Awaid, CEO of DGC, added: “DGC indeed makes a valuable contribution to the Dhofar Governorate and to Oman through the provision of power to the people and industries of the Dhofar Governorate. The power sector in Oman has a proven track record with strong demand growth. The DGC IPO will offer a prospect for investment in a nation-building industry.”


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