RIYADH: Oman energy company OQ has selected Bank of America and Bank Muscat to assist in the initial public offering of its gas pipeline unit, as the Sultanate steadily moves ahead in its privatization program.
Quoting people familiar with the matter, Bloomberg reported that the IPO of OQ Gas Network could raise as much as $800 million. The sources, who asked for anonymity, revealed that OQ may consider listing in Muscat and Saudi Arabia’s stock exchange, known as Tadawul.
According to the sources, more banks may enter the deal, and listing details about size and locations could change as nothing has yet been finalized.
The OQ IPO is a recent addition to the list of growing Gulf IPOs, as energy-rich governments source funds to diversify economies that have been dependent on oil for several decades.
In June, Oman had said that it is planning to sell shares of two OQ units. The Sultanate, however, did not reveal the names of the units which will go public in the future.
OQ, formerly known as Oman Oil Co. is headquartered in Muscat. The firm is a wholly-owned subsidiary of the Government of Oman through the Oman Investment Authority.
