Oman power IPO planned

04 May 2015

2,000MW IPP came online in late 2014

  • Initial public offering for Sur Independent Power Project will be launched on 10 May
  • 35 per cent of shares in local Phoenix Power will be floated
  • The plant was developed by a consortium led by Japanese Marubeni

Oman’s Phoenix Power, which owns and operates Sur Independent Power Project (IPP), plans to launch an initial public offering (IPO) on 10 May.

It will remain open until 8 June.

The company will float 35 per cent or 512 million shares, according to Oman’s utility sector regulations. The offer price is RO0.110 a share.

Currently, Axia Power, part of Japan’s Marubeni, owns 50 per cent of shares. Japan’s Chubu Electric owns 30 per cent, Qatar Electricity & Water Company owns 15 per cent and Multitech, part of the local Bahwan Group, owns 5 per cent.

At 2000MW, the Sur IPP is Oman’s largest power plant. It came online in December 2014.

A consortium led by Marubeni signed a 15-year power purchase agreement (PPA) with Oman Power & Water Procurement Company (OPWP) to develop the plant. This may be extended.

The financing included $1.24bn debt, of which $697m has been provided by Japan Bank for International Cooperation (Jbic) and $547m in a commercial debt tranche.

The financial adviser is Bank Muscat Investment Banking, with five other local and regional banks acting as collectors. The legal adviser is local Al-Busaidy, Mansoor Jamal & Co.

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