RIYADH: Omani state-run oil and gas company OQ Exploration and Production has announced the price range for its upcoming initial public offering on the Muscat Stock Exchange, setting shares between 0.37 ($0.96) and 0.39 Omani rial per share.
The company will offer 2 billion shares, equivalent to 25 percent of its total, with listing anticipated by Oct. 28, pending final regulatory approval.
“This marks the largest IPO in Oman’s history and the first of its kind in the exploration and production sector,” said Ashraf Al-Mamari, Group CEO of OQ, following the Financial Services Authority’s approval of the prospectus.
OQ first announced its intention to list OQEP on Sept. 9, aiming to drive future growth.
Ahmed Al-Azkawi, CEO of OQEP, called the offering “a rare opportunity to invest in a leading Omani oil and gas explorer and producer.”
This IPO follows successful listings of other OQ subsidiaries, including Abraj Energy Services and OQ Gas Networks.
The share offering will be split into two tranches: one for institutional investors and one for retail investors.
Institutional investors have been allocated 800 million shares, priced between 0.37 and 0.39 rial, with the final price to be set through a bookbuilding process.
Anchor investors will receive 400 million shares, representing 20 percent of the offer, with multiple firms already committed. Omani institutions such as Al-Hosn Investment Co. SAOC and Bank Dhofar SAOG have pledged approximately 156 million rial at the maximum price.
Retail investors will be allocated another 800 million shares, equally divided between large and small applicants. Omani individuals will receive a 10 percent discount on shares, with a maximum price of 0.351 rial per share, while non-Omani individuals will pay up to 0.39 rial.
The retail offering will be open for subscription from Sept. 30 to Oct. 9, while the institutional offering closes a day later on Oct. 10.
OQEP plans to use the proceeds to focus on value creation and sustainable practices in the oil and gas sector.
Al-Azkawi reaffirmed the company’s commitment to transparency and maximizing shareholder value, noting that the offering is Shariah-compliant.
The firm has announced a quarterly dividend policy, with the first payout of 57.7 million rial expected in December 2024.
OQ will retain a 75 percent stake in OQEP post-IPO and has agreed to a 365-day lock-up period for the remaining shares.
All proceeds from the sale will go to OQ, the selling shareholder, with OQEP receiving none of the funds. Completion of the IPO is subject to market conditions and regulatory approvals.
