Oman’s OQ IPO $771 mn IPO oversubscribed

Group announced in June a net profit of $1.1 bn
Oman’s OQ IPO $771 mn IPO oversubscribed
Announcing OQ IPO (Photo from Oman News Agency)

During the initial day of the book-building process, OQ Gas Networks SOAG (OQ) from Oman, which plans to float up to 49 percent of its shares, announced that the segment of the offer designated for institutional investors, accounting for 40 percent of the IPO size, has been oversubscribed multiple times at the maximum price of 0.140 Omani rials ($0.36).

With a pricing set at the upper end of the range, the initial public offering (IPO) is expected to generate $771 million through the sale of two billion shares. This substantial offering surpasses the $748 million stake sale of Oman Telecommunications in 2005, making it the largest of its kind in the country’s history.

Institutional investors have a chance to participate in the book-building period until October 9. The retail offer, representing 30 percent of the shares, is expected to conclude on October 5. The final price is set to be revealed on October 12. Trading for the shares will commence on October 24.

OQGN, the gas transporter of Oman, fulfills the role of supplying natural gas to various entities, including power plants, free zones, industrial clusters, LNG complexes, and other customers.

Read more: Oman OQ to offer 49 percent stake in gas pipeline unit

Strong financial performance

In June 2023, OQ Group announced a net profit of $1.1 billion for the first half of the year. Additionally, the group’s total assets have reached $31.2 billion during the same period.

In H1 2023, OQ Group reported earnings before interest, taxes, depreciation, and amortization (EBITDA) amounting to $2.3 billion.

According to the semi-annual report, OQ Group achieved an average total production of oil. This production figure combines output from its operated assets and investment partnerships. In total, the average daily production amounted to 222,000 barrels per day.

During H1, there was a noteworthy 7 percent increase in production compared to the same period last year.

For more news on markets, click here.

The stories on our website are intended for informational purposes only. Those with finance, investment, tax or legal content are not to be taken as financial advice or recommendation. Refer to our full disclaimer policy here.