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Oman methanol and ammonia producer OQ Base Industries (OQBI) plans to offer 49% of its shares in an IPO on the Muscat Stock Exchange, with a listing expected in December.
The subscription period for Category I and Category II investors is expected to open later this month, with Oman’s state oil group and parent company OQ SAOC retaining the right to amend the size of the offering before the end of the subscription period.
Bank Dhofar SAOG, Bank Muscat SAOG, and Morgan Stanley & Co. International have been appointed as joint global coordinators, with Bank Dhofar SAOG and Bank Muscat SAOG also appointed as issue managers.
Additionally, Kamco Investment Company and BSF Capital have been appointed as Joint Bookrunners.
OQ owns 100% of the capital of OQBI directly and through its subsidiaries, Takamul Investment Company and OQ Salalah Industries Company.
For the year ended 31 December 2023, OQBI posted a revenue of $510 million, and an adjusted EBITDA margin of 43.1%.
OQBI said it intends to pay dividends twice each fiscal year after the offering, with a first dividend distribution of approximately 24.5 million ($63.6 million) for the first nine months of 2024 by January 2025.
OQBI operates three advanced plants with a combined nameplate production capacity of 1,816 ktpa, located in the Salalah Freezone. A brownfield expansion project is also in the pipeline to increase methanol plant capacity by 50%.
The OQBI IPO follows weeks after Oman’s state oil group listed its exploration and production business, which saw OQEP raise $2.03 billion, in the sultanate’s biggest ever listing.
(Writing by Bindu Rai, editing by Seban Scaria)
