MUSCAT: OQ Base Industries (OQBI) officially listed its shares on the Muscat Stock Exchange (MSX) today, following a successful initial public offering (IPO) of 49% of its capital. The IPO, valued at approximately RO 387 million ($1 billion), was oversubscribed by 2.1 times, reflecting strong investor confidence in the company’s diverse portfolio and growth potential.

The bell-ringing ceremony was presided over by Shaikh Ghusan bin Hilal al Alawi, Chairman of the State Audit Institution (SAI), along with senior officials. OQBI’s listing marks the fourth OQ Group company to go public, following Abraj Energy Services, OQ Gas Networks, and OQ Exploration and Production, strengthening MSX’s representation of Oman’s economy.

Abdullah bin Salem al Salmi, CEO of the Financial Services Authority, highlighted that OQBI’s listing enhances the MSX’s portfolio in the vital oil and gas sector, advancing the exchange’s status as a promising investment hub. “We hope to see more companies listed to position MSX as an emerging market that attracts foreign investments,” he noted.

Ashraf bin Hamad al Mamari, CEO of OQ Group, emphasised that the listing supports OQ’s long-term growth strategy. “The market value of OQ Group’s listed companies is nearly RO 3.5 billion, representing a significant portion of MSX’s total market capitalisation of RO 12 billion,” he said.

Engineer Ali bin Mohammed al Lawati, Chairman of OQBI, called the IPO’s success a testament to the company’s strategic importance. “Our journey towards becoming a listed company reflects the hard work and dedication of our team,” he stated.

Haitham bin Salem al Salmi, CEO of MSX, announced that OQBI’s entry boosted the stock exchange’s market capitalisation to RO 27.532 billion. This aligns with Oman Investment Authority’s (OIA) efforts to involve the private sector and promote economic diversification under Oman Vision 2040.

The IPO’s final offering price was set at 111 baisas per share, raising approximately RO 188 million ($489 million). Major investors included the Saudi Omani Investment Company, Omani Social Protection Fund, Falcon Investments and Gulf Investment Corporation, each acquiring a 7.5% stake, totaling 30% of the shares offered.

Operating from the Salalah Free Zone near the Port of Salalah, OQBI benefits from Oman’s strategic location, enabling access to key markets in the Middle East, North Africa, Europe and Asia.

The company plans to distribute RO 32.7 million in dividends for fiscal year 2024, with biannual distributions thereafter, signaling strong future cash flows and profitability potential.

OQBI operates three advanced plants with a combined annual production capacity of 1,816 tonnes, processing natural gas supplied through long-term agreements with Integrated Gas Company via OQ Gas Networks’ transmission network.

The listing underscores OQBI’s commitment to driving economic growth, attracting investments and enhancing Oman’s global market presence.

2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (Syndigate.info).