Oman scores another big IPO hit, OQ Base Industries generates $489 million
OQ Base Industries' generates substantial retail investor demand
Dubai: Oman continues its successful IPO spree, with OQ Base Industries generating OR188 billion (around $489 million) from its stock float. The offer, priced at 111 baisas and at the top of the range, also pulled in a sizeable retail investor support.
There were over 35,700 individual subscribers, who between them pulled together OR95 million demand for the IPO's Category II offering, resulting in subscription levels of 1.3x.
In all, the aggregate demand for the float came to OR387 million - or more than $1 billion - from local, regional and international investors across the anchor, Category I and Category II subscriptions, with books 2.1x subscribed (including anchors) at the final IPO offer price.
$1b
In October, the OQ Exploration & Production raised $2 billion by going to market, offering 25% stake in the process. It then went on to be the largest listed company on the Muscat Stock Exchange with a market cap of OR3 billion. (And in 2023, there was the listing of OQ Gas Networks.)
A total of 1.69 billion ordinary shares was floated, representing 49% of OQBI’s issued share capital. The OQ SAOC will retain the remaining 51%. (OQ is the new name for Oman Oil Company.)
“We are pleased that investors have acknowledged the strength of our business and our clear strategy for growth. This strong endorsement both in Oman and internationally reinforces us in the next stage of our journey, as a listed company on the MSX,” said Khalid Khalfan Al Asmi, CEO at OQBI.
OQBI is the sole integrated producer in Oman of methanol, ammonia and LPG products, which comprise of propane, butane, condensate and LPG sold domestically in the form of cooking gas. Its three plants have a combined production capacity of 1,816 ktpa (kilo-tonnes per annum).
With the exception of a small portion of LPG sold domestically (as cooking gas), all of OQ Base Industries' products are sold under 'long-term, arms’-length exclusive take-or-pay take agreements' with OQ Trading for exports. These are principally in Asia and the wider MENA region and, to a lesser extent, for Europe and Africa.