Omani energy firm OQ SAOC is seeking to raise as much as 297 million rials ($771 million) from the initial public offering of its gas pipelines unit in what’s set to be the country’s biggest listing on record.
OQ set the price range for the IPO of OQ Gas Networks SAOG at 131 baisas to 140 baisas per share, according to a statement on the market regulator’s website. The state-run firm is selling 2.12 billion shares, or a 49 per cent stake, in OQGN through Oman Energy Trading Company Limited and Oman Oil Services Limited.
Fluxys Belgium SA has committed to buy a 4.9 per cent stake in OQGN as an anchor investor. Saudi Arabia’s Public Investment Fund and the Qatar Investment Authority are also buying 10 per cent of the IPO each as anchor investors, terms of the deal obtained by Bloomberg News show.
The bookbuilding period will run from September 26 until October 9 for institutional investors, while the retail offer will close on October 5. The final price is due to be announced on October 12 with the shares set to start trading on October 25, the terms show.
OQGN is set to be the second IPO in Oman’s privatisation program that’s aimed at boosting state coffers and expanding its bourse. Similar listing drives in Saudi Arabia and the UAE have raised billions of dollars in the last couple of years.
OQ floated its oil-drilling unit Abraj Energy Services SAOG in March, raising $244 million in what was Oman’s biggest listing in over a decade. Its shares have risen almost 18 per cent since.
Oman Telecommunications Co SAOG’s $748 million IPO in 2005 is currently the country’s largest listing, data compiled by Bloomberg show.
OQGN holds a natural monopoly over the essential gas transportation infrastructure in Oman and has about 4,031 km (2,505 miles) of gas pipelines. Bank Muscat SAOG, Bank of America Corp., and EFG Hermes have been appointed joint global coordinators on OQGN’s IPO.