Oman’s OQEP to raise $2.03bn from Muscat listing

DUBAI: Oman’s OQ Exploration and Production (OQEP) is set to embark on a significant financial endeavour by raising up to 780 million Omani riyals (approximately $2.03 billion) through its proposed initial public offering (IPO) on the Muscat Stock Exchange (MSX).

The strategic move underscores OQEP’s ambition to enhance its capital base while providing investors with an opportunity to participate in Oman’s burgeoning energy sector.

The IPO price range has been designated between 370 and 390 Omani baisas per share, which values the company at an impressive OMR 3.12 billion.

The final share price will be determined through a meticulous book-building process, ensuring that market conditions are aptly reflected in the final valuation. The offering will consist of 2 billion shares, accounting for 25 per cent of OQEP’s total issued share capital, thus marking a notable entry into the public market.

In a show of confidence, six anchor investors have committed to subscribe for a combined 20 per cent of the IPO at a price not exceeding 390 Omani baisas per share.

These investors—Al-Hosn Investment Company SAOC, Bank Dhofar SAOG, Mars Development and Investment LLC, Oman National Investments Development Company SAOC, Salim & Partners LLC, and the Social Protection Fund—play a crucial role in stabilising the IPO and attracting broader investor interest.

The IPO will be structured into two distinct tranches.

The first tranche targets eligible investors in Oman and institutional investors in various countries, representing 60% of the total offering. Conversely, the second tranche, designated for retail investors in Oman, will account for the remaining 40%.

The dual tranche approach not only facilitates broader participation but also strengthens OQEP’s community engagement and market presence.

The subscription periods for this lucrative offering are slated to commence on September 30. The closing dates vary, with the category I offer concluding on October 10 and the category II offer wrapping up on October 9.

The timeline provides a structured period for investors to assess their participation in a venture that promises to bolster Oman’s economic landscape and foster growth within the energy sector.