IC Power files for $400m NYSE IPO

Idan Ofer

The prospectus shows that of the power stations owned by the Idan Ofer controlled company in 11 countries, the OPC plant in the Negev is easily the most profitable.

Kenon Holdings (TASE: KEN; NYSE; KEN) unit IC Power Pte. Ltd. (ICP) (IC stands for Israel Corporation) has filed a prospectus with the US Securities and Exchange Commission (SEC) for an IPO on the New York Stock Exchange (NYSE). The company did not disclose details about the offering but back in 2015 when the company first spoke of an IPO its plan was to raise $400 million, at a company value of $1.5 billion.

ICP is the main asset of Kenon, which is controlled by Idan Ofer, and has a market cap of $591 million. ICP owns a string of power stations in 11 countries, mainly in Central and South America, with three of the power stations in Peru supplying 2,189 megawatt. The company also has two power stations in El Salvador (210 megawatt), one in Chile (140 megawatt), one in Guatemala (179 megawatt), two in Panama (126 megawatt), one in the Dominican Republic (67 megawatt), three in Nicaragua (185 megawatt), one in Bolivia (228 megawatt), one in Colombia (31 megawatt) and one in Jamaica (60 megawatt).

In Israel, IC Power operates the OPC Mishor Rotem power station in the Negev (440 megawatts), Israel's first privately owned power station, and a small power plant in Hadera acquired from Hadera Paper Mills which produces 17 megawatt but has a license to build a 140 megawatt power plant.

The prospectus filed by IC Power shows that the OPC power station is Idan Ofer's most profitable power plant, which was responsible for 38% of the profit of the entire company, which supplying only 17% of the company's electricity. The company also states in its prospectus that OPC currently supplies 11% of IC Power's overall electricity but holds 27% of sales in the coming years.

Published by Globes [online], Israel business news - www.globes-online.com - on January 19, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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