Sohar Power IPO Closes Successfully, 35% of Equity Sold

GDF Suez Energy International has reported that the initial public offer of its Sohar Power Company subsidiary for listing on the Muscat Stock Exchange has successfully closed on July 30, 2008, and a total of 9.73 million shares representing 35% of the company’s equity were sold for $35 million.

GDF Suez said that the shares, which were offered primarily to individual investors in the Omani capital market, attracted demand from institutional investors too. The initial public offering (IPO) was oversubscribed about 21 times to the tune of $725 million, reportedly making the Sohar Power Company (SPC) IPO the most successful issuance ever in Oman’s power sector.

Following the IPO, GDF Suez Energy International owns 45% of SPC’s equity. Sogex Oman Company, The Sultanate of Oman Ministry of Defense Pension Fund, WJ Towell & Company and Zubair Corporation jointly own 20% of the company’s equity. Institutional and individual investors now hold the balance 35% of the company’s equity.

Dirk Beeuwsaert, CEO of GDF Suez Energy International, said: “The success of the IPO illustrates the confidence of the Omani public and the larger investors’ community for well-structured and profitable projects promoted by GDF Suez Energy International in association with its local partners.”