Home Finance IPOs OQ Exploration and Production seeks to raise $2bn from IPO The IPO attracted six cornerstone investors, including Al-Hosn Investment Company, Bank Dhofar and Tanmia, which agreed to subscribe for shares worth as much as OMR156m by Kudakwashe Muzoriwa September 23, 2024 Image credit: Supplied Oman state-owned energy giant OQ seeks to raise OMR780m ($2.02bn) from the initial public offering (IPO) of its exploration and production business in what is the sultanate’s biggest offering on record. OQ Exploration and Production (OQEP) is offering 2 billion shares, equivalent to 25 per cent of the company’s total issued share capital. The indicative share price of Bzs370 and Bzs390 per share implies a market valuation of around OMR3.1bn at the top of the range. Ashraf Hamed Al Mamari, group CEO of OQ, said the IPO is the largest in Oman’s history and the first of its kind in the exploration and production sector following the successful listings of Abraj Energy Services and OQ Gas Networks. The company’s IPO drew in six cornerstone investors, including Al-Hosn Investment Company, Bank Dhofar and Tanmia, which agreed to subscribe for shares worth as much as OMR156m. OQEP is offering the shares in two tranches – institutional investors and retail investors – between September 30 and October 9. Shares in the company will begin trading on the Muscat Stock Exchange on October 28. To help attract investors, OQEP plans to pay out OMR230.7m in annual dividends each year from 2024 through 2026. The company also plans to pay a performance-linked dividend equal to 90 per cent of cash flow after investments in 2025 and 2026, it said in a statement. HSBC, Natixis, Oman Investment Bank and Sohar International are joint global coordinators on the offering. Oman is following Abu Dhabi and Saudi Arabia in selling stakes in energy assets, capitalising on a rebound in crude prices to attract foreign investors and boost interest on their respective exchanges. Last year, OQ floated its gas pipelines business in a $749m IPO as well as its oil-drilling unit Abraj Energy Services in a $749 m IPO. Meanwhile, Oman’s wealth fund is planning several dozen listings over the next few years, including the state power utility and a logistics firm, according to Bloomberg. Read: Egypt to sell United Bank stake in IPO on local bourse Tags IPO Muscat Stock Exchange Oman OQ Exploration and Production You might also like UAE-Oman Hafeet Rail secures $1.5bn financing facility ADNH Catering eyes serving up Dhs864m in IPO offering Oman lifted from junk status by S&P amid reforms Egypt to sell United Bank stake in IPO on local bourse