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DGC IPO subscription date extended by two weeks

Business Sunday 05/August/2018 16:06 PM
By: Times News Service
DGC IPO subscription date extended by two weeks

Muscat: Dhofar Generating Company (DGC) SAOG (Under Transformation) on Sunday has decided to offer more value to investors participating in its initial public offering (IPO) in order to encourage enhanced retail participation and active trading in the shares of DGC upon listing.
The decision was made by DGC in consultation with its founder international shareholders Mitsui, ACWA Power along with Omani shareholder Dhofar International Development and Investment Holding Co. (DIDIC).
The IPO offer price has been revised to 225 baisas per share on the entire offering of 88,896,000 shares. This translates into a higher dividend yield of 8 per cent for the first five years (including issue expenses). The IPO period has also been extended until August 16, 2018 allowing more investors to participate in the offering.
The Capital Market Authority (CMA) kindly consented to this move and approved the extension of the issue by two more weeks (up to August 16, 2018).
“DGC is a strategic player in the utilities industry of Oman and shares the vision of the regulator towards continuous growth and prosperity for the Dhofar region. The founding shareholders Mitsui, ACWA Power and DIDIC have taken this decision considering their long-term commitment to Oman and in appreciation of the sentiments of the investor community," John Clark, Chairman of DGC, said.
"We believe that the revised price of 225 baisas per share, which is even lower than the proportionate cost of acquisition for the founding shareholders originally, will provide a high degree of value for all investors groups in the short and long term, and make the issuance even more attractive,” he added.
Elaborating on the decision Naif Al Awaaid, CEO of DGC, said, “DGC has been successfully powering the Dhofar Governorate since its inception in 2003 with an even more important role after commissioning of the new 445MW power plant in January 2018. With high reliability and solid principles, we ensure that Dhofar and its people and businesses remain continuously empowered to ensure their sustained progress."
"We are delighted to now extend the offer period to the public in Oman and give them added opportunity to participate in our exceptional journey of success. The revised IPO price is now even more attractive and supports a unique opportunity for an investment in the region’s largest power company,” he added.
Investors are urged to take advantage of the decision and subscribe to the IPO before August 16, 2018.
Investors who have already subscribed to the IPO at the previous price have the flexibility to continue with their subscription without taking any further steps and they would be allotted proportionately more shares at the revised price so they also get the benefit of this decision.