Oman IPO: OQ Exploration and Production to float 25% stake on MSX

OQ Exploration and Production (OQEP), Oman’s largest pure-play oil and gas exploration and production company, has announced plans to float an initial public offering (IPO) on the Muscat Stock Exchange (MSX).

OQEP, a wholly state-owned company under the Oman Investment Authority (OIA), is one of the top three oil and gas producers in Oman, with a significant growth record since its establishment in 2009.

The company intends to float up to 25 per cent of its shares, pending regulatory approval from the Financial Services Authority of Oman.

The subscription period is expected to commence in September 2024, with the listing anticipated in October.

The company has expanded its average daily production nearly 14-fold by 2023 and holds extensive joint venture partnerships with international oil majors, including Shell, BP and TotalEnergies.

OQ Exploration and Production IPO aligns with growth strategy

Ashraf Hamed Al Mamari, group CEO of OQ, highlighted the IPO as a key step in OQ’s strategy to unlock value and attract investment.

He stated, “This marks a significant milestone in enhancing OQ’s portfolio through strategic divestments and offering a compelling investment opportunity in Oman’s oil and gas sector.”

CEO of OQEP, Ahmed Al-Azkawi, emphasised the company’s alignment with Oman’s Vision 2040 and its commitment to sustainable growth and local value creation. “Our growth trajectory, strategic partnerships, and focus on sustainability position OQEP as a reliable and attractive investment opportunity.”

The IPO will offer two tranches: 60 per cent to institutional investors and 40 per cent to retail investors in Oman.

OQEP has also adopted a quarterly dividend policy, expecting to distribute its first dividend of approximately $150m in December.

This listing, supported by Oman’s favourable regulatory environment, is part of broader efforts to boost investment in the sultanate’s oil and gas industry and diversify its economy.