The Muscat Stock Exchange (MSX) marked a milestone as OQ Exploration and Production (OQEP) officially listed its shares, initiating public trading after a successful Initial Public Offering (IPO) that offered 25 percent of the company’s share capital. With a market capitalization exceeding OMR3 billion ($7.79 billion), OQEP has established itself as the largest entity on the MSX and is also the first exploration and production firm to reach this status. This achievement underscores ongoing efforts to diversify the MSX’s offerings by incorporating major players from various sectors of Oman’s economy.
The event commenced with a ceremonial bell ringing to signal the start of trading, officiated by H.E. Sultan bin Salim Al Habsi, Oman’s minister of Finance.
Strategic transition to public company
Ashraf Hamed Al Mamari, group CEO of OQ, reflected on the occasion, noting that this transition signifies a pivotal moment as OQ Exploration and Production evolves from a closed joint-stock entity to a public joint-stock company. He mentioned that OQEP is now the third entity within the OQ Group to go public, following Abraj Energy Services and OQ Gas Networks, in line with the Oman Investment Authority’s strategy to divest certain government assets. This initiative supports economic diversification and aligns with the objectives of Oman Vision 2040. He emphasized that this transition represents a significant leap for OQEP, unlocking greater investment opportunities and enabling the expansion of operations both domestically and internationally, while reinforcing their dedication to governance and transparency.
Impact on the stock exchange
Haitham Salim Al Salmi, CEO of the Muscat Stock Exchange, remarked that the listing of OQ Exploration and Production marks a historic day for the MSX. He pointed out that OQEP constitutes 11.3 percent of the total market value of listed companies, and such a prominent firm will enhance the MSX’s standing to emerging market status, bolstering investor confidence in Oman. He noted that investors now enjoy a broader spectrum of sectors to consider, and the inclusion of large companies fosters the growth of the Exchange’s market value. This development further enhances the representation of various economic sectors and contributes to the overall advancement of Oman’s economy.
Commitment to governance
Ahmed Said Al Azkawi, CEO of OQ Exploration and Production, highlighted that the listing signifies a crucial stage in the company’s development since its inception in 2009 as a government investment entity for exploration and production. He reiterated OQEP’s commitment to upholding the highest standards of governance and transparency in accordance with regulatory requirements established by the Financial Services Authority and the Muscat Stock Exchange.
Read more: Oman’s OQEP raises $2 billion in IPO
Record-breaking IPO
OQEP’s IPO stands as the largest of its kind in Oman and one of the largest in the region this year, with two billion shares representing a 25 percent stake available for public purchase. Moreover, the IPO was oversubscribed by 2.7 times, yielding total proceeds of approximately OMR780 million, with the share price set at 390 baizas. This demonstrates strong confidence from both local and international investors in OQEP, Oman’s capital market, and the broader national economy.
Strong investor demand
Earlier in October, OQEP announced it had successfully raised $2.03 billion through its IPO on the local stock exchange, marking the largest listing in the history of the Gulf nation. The company offered around two billion shares, representing a 25 percent stake, and priced the offering at the upper end of its indicative range of 370-390 baizas per share. The IPO saw demand exceeding OMR1.0 billion (excluding anchor investors) for the Category I offering, resulting in an oversubscription rate of approximately 3.4 times. This IPO is about 2.6 times larger than the previous record IPO in Oman. Institutional investors who participated in the Category I offering at Bzs 390 per share will receive around 29.8 percent of their requested shares.
Record retail participation
Additionally, support from over 113,000 individual subscribers generated more than OMR610 million in demand for the Category II offering, marking the highest retail demand for an IPO on the MSX to date, with an oversubscription level of approximately 2.2 times.
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