Jorf Lasfar Energy Co will go ahead with share sal next week in bid to to raise $176m
Moroccan power firm Jorf Lasfar Energy Co (JLEC), which is owned by Abu Dhabi National Energy Co, has got the go-ahead from Moroccan market watchdog CDVM for a share sale next week to raise MD1.5bn ($176 million), the company said on Tuesday.
JLEC runs the largest coal-fired power plant in the Middle East and North Africa and is also the first independent power producer (IPP) in Morocco, supplying 38 per cent of the Kingdom's electricity.
It has been valued at around MD9bn under the share offer.
The company will sell 2.25 million new shares in the offering at 447 dirhams each, raising about 1 billion dirhams, with the sale running from Dec 10-12. The remaining MD500m to be raised has been agreed in a private deal with Moroccan institutional investors - RMA Watanya, SCR Maroc and MCMA, a statement released by the company said.
JLEC hired three Moroccan banks to manage the offer - Attijariwafa bank, the local unit of France's Societe Generale and Upline securities.
The offering would be the first in Morocco since January 2012 and could help revive Casablanca's stock market, which has suffered from the knock-on effects of the euro zone crisis and a lack of foreign investors.
JLEC is committed to a heavy investment plan for its power plant at Jorf Lasfar near the city of El Jadidaon the Atlantic coast.
Earlier this year TAQA sealed a $1.4 billion financing deal with Japanese and Korean banks for its Moroccan subsidiary to increase the plant's capacity by 700 megawatts to 2065 MW.
The expansion of Jorf Lasfar will increase Moroccan power generation capacity by more than 10 percent.