Oman’s OQ Exploration and Production raises $2bn in IPO

Image credit: OQ

OQEP, the exploration and production business of Oman’s state oil group, has raised $2.03bn from its initial public offering (IPO) on the local stock exchange, it said on Thursday, in the Gulf country’s biggest-ever listing.

OQEP, which is floating around 2 billion shares equal to a 25 per cent stake, said in a statement the offering was priced at the top of its indicative range of 370-390 baizas per share and was oversubscribed by around 2.7 times, including anchor investors.

The listing is part of a privatisation programme by state-owned energy group OQ, which is helping Oman – a small non-OPEC oil producer – to diversify its economy and cut its debt.

It follows last year’s IPOs of OQ’s pipeline business, which raised $771m and oil and gas drilling business Abraj Energy Services, which raised $244m.

Logistics company Asyad Group is also considering an IPO of its Asyad Shipping subsidiary by the end of 2024, sources told Reuters.

Following the IPO, which is also set to be the GCC region’s biggest so far this year, OQEP will have a market capitalisation of around $8.1bn, making it the largest company on the Muscat stock exchange, where shares are expected to start trading on or around October 28.

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