The $771 million initial public offering of OQ Gas Networks SAOG is likely to price at the top of a marketed range, setting it on track to be the country’s biggest listing on record.
Orders below 140 baisas per share risk missing out on the deal, according to terms seen by Bloomberg. Institutional investor books are multiple times oversubscribed at this level, the terms showed. The firm will continue taking institutional investor orders until Monday.
Omani state energy firm OQ SAOC is selling 2.12 billion shares, or a 49 per cent stake, in the gas pipelines business at 131 baisas to 140 baisas per share. Fluxys Belgium SA, Saudi Arabia’s Public Investment Fund, and the Qatar Investment Authority are buying a combined 30 per cent of the deal as anchor investors.
At the top end, OQGN will surpass Oman Telecommunications Co. SAOG’s $748 million IPO in 2005 as the sultanate’s largest.
Demand for OQ’s IPO is strong despite a recent global market rout due to concerns over persistently high interest rates and slowing economies. Volatile markets forced Triton to postpone the planned share sale of military gearbox maker Renk in Germany.
The Middle East has bucked much of the global activity, with listings in the region drawing billions of dollars in demand and rising on their debuts.
OQGN is the second IPO in Oman’s privatization program aimed at boosting state coffers and expanding its bourse. Similar listing drives in Saudi Arabia and the UAE have raised billions of dollars over the last couple of years.
Bank Muscat SAOG, Bank of America, and EFG Hermes are joint global coordinators on the deal.