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Sembcorp's Joint Venture, Sembcorp Salalah Power & Water Company, to Launch Initial Public Offering in Oman

August 21, 2013

Sembcorp Industries (Sembcorp) announces that its joint venture in Oman, Sembcorp Salalah Power & Water Company (Sembcorp Salalah), which owns and operates the Salalah Independent Power and Water Plant (Salalah IWPP), will be launching an Initial Public Offering (IPO) on the Muscat Securities Market on August 28, 2013. Sembcorp Salalah will be offering 33,410,019 existing ordinary shares, representing 35% of its issued share capital. The shares will be priced at OMR1.59 (approximately S$5.17) per share.

The IPO is expected to raise around OMR53 million (approximately S$172.2 million). Sembcorp Salalah is currently 60% owned by Sembcorp Utilities, a wholly-owned subsidiary of Sembcorp, 35% owned by Oman Investment Corporation (OIC) and 5% owned by Bahrain-based BDCC Investment Company. Post listing, Sembcorp will hold a 40% stake in Sembcorp Salalah, while OIC and BDCC will hold 21.9% and 3.1% respectively.

The existing shareholders of Sembcorp Salalah are required to undertake this IPO and make 35% of Sembcorp Salalah’s shares available to the public as it was a condition under the Project Founders Agreement.

The US$1 billion Salalah IWPP was successfully completed and has been in full commercial operation since May 2012. The facility consists of a gas-fired power plant with a contracted power capacity of 445 megawatts and a reverse osmosis seawater desalination plant with a water capacity of 15 million imperial gallons (69,000 cubic metres) per day. It provides power and water under a 15-year power and water purchase agreement with the Oman Power and Water Procurement Company, which is wholly owned by the Government of Oman.

Highlights of the IPO:

  • IPO of 33,410,019 existing ordinary shares, representing 35% of the issued and paid-up share capital of Sembcorp Salalah
  • IPO will be open for subscription in Oman from August 28, 2013 to September 26, 2013
  • Offer open to individual investors, juristic persons and institutions within Oman, and to non-Omani investors outside of the USA, Canada, Australia, South Africa, Republic of Ireland and Japan
  • Shares priced at OMR1.59 per share
  • Total offer size of OMR53 million
  • Market capitalisation on listing of OMR152 million
  • First day of trading expected to be around October 10, 2013
  • Further information is available from the Issue Manager, HSBC Bank Oman, the following collecting banks: Bank Muscat, Oman Arab Bank, National Bank of Oman and Bank Dhofar, as well as www.sembcorpsalalah.com.om/ipo

This announcement is not for publication or release or distribution, directly or indirectly, in whole or in part, in or into the United States (including its territories and dependencies, any State of the United States and the District of Columbia), Canada, Australia, South Africa, Republic of Ireland or Japan or any jurisdiction in which the same would be unlawful. This announcement does not constitute or form a part of any offer or solicitation to purchase or subscribe for shares of Sembcorp Salalah Power & Water Company.

The Securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933 (the “Securities Act”). The Securities may not be offered or sold in the United States or to, or for the account or benefit of, US persons (as such term is defined in Regulation S under the Securities Act) except pursuant to an exemption from the registration requirements of the Securities Act. There will be no public offer of securities in the United States.

Copies of this announcement are not being made and may not be distributed or sent into the United States, Canada, Australia, South Africa, Republic of Ireland or Japan.