Muscat – OQ Exploration and Production (OQEP), Oman’s government-owned oil and gas exploration and production company, announced that the subscription period for its initial public offering (IPO) will commence on September 30.

The offering comprises of a total of 2,000,000,000 shares, representing 25% of OQEP’s total issued share capital. The IPO is expected to raise up to RO780mn (equivalent to $2.026bn) at the top of the price range, valuing OQEP up to RO3.120bn (equivalent to $8.104bn).

OQEP on Sunday announced the offer price range and IPO subscription details. The IPO prospectus has been approved by the Financial Services Authority (FSA).

Biggest IPO in Oman’s history

In a press statement, Ashraf Hamed al Mamari, Group CEO of OQ, said that the OQEP’s initial public offering marks the largest IPO in Oman’s history and the first of its kind in the exploration and production sector. It follows the successful listings of Abraj Energy Services and OQ Gas Networks.

Ahmed al Azkawi, CEO of OQEP, said, “We are delighted to announce the receipt of the FSA’s administrative decision and the issuance of the prospectus for the upcoming IPO of OQEP. Through the publication of the prospectus, we offer the public a rare opportunity to invest in a leading Omani oil and gas explorer and producer in what is set to become the largest IPO in the country’s history. We are also extremely pleased to have a strong compilation of reputed Omani institutions as Anchor investors. We also highlight our commitment to transparency, sustainable practices and our continued endeavour to maximise shareholder value.”

OQEP said that the IPO will be conducted in the manner approved by the FSA and will be offered in a parallel offering. The offering will include a Category I offer for institutional investors representing 40% of the total offer size, a sale to Anchor Investors representing 20% of the total offer size and a Category II offer for retail investors in Oman representing the remaining 40%.

The subscription price for the Category I offer will be between 370bz and 390bz per share, with the final price to be set through a book-building exercise.

The subscription price for Omani individuals in the Category II offer will be set at a 10% discount to the final Category I subscription price. Therefore, the maximum subscription price for Omani individuals in the Category II offer will be 351bz per share, reflecting a 10% discount to the maximum Category I subscription price. The subscription price for non-Omani individuals in the Category II offer will be set at a maximum of 390bz per share.

The subscription periods open on September 30, 2024, with the Category I offer closing on October 10, 2024 and the Category II offer closing on October 9, 2024. OQEP shares are expected to commence trading on the Muscat Stock Exchange on or around October 28, 2024, under the trading symbol ‘OQEP’.

Anchor investors

OQEP announced that six Anchor investors – Al-Hosn Investment Company, BankDhofar, Mars Development and Investment, Oman National Investments Development Company, Salim & Partners LLC, and Social Protection Fund – have irrevocably committed to subscribe for an aggregate of 20% of the offering at the final subscription price, not exceeding 390bz per share.

As per the offer details, 400,000,000 offer shares have been allocated for Anchor investors, being 20% of the offer (for up to RO156mn).

Al-Hosn Investment Company has committed to purchase 120,156,047 offer shares, BankDhofar has committed to purchase 20,806,242 offer shares, Mars Development and Investment has committed to purchase 52,015,605 offer shares, Oman National Investments Development Company has committed to purchase 20,806,242 offer shares, Salim & Partners LLC has committed to purchase 26,007,802 offer shares, and Social Protection Fund has committed to purchase 160,208,062 offer shares.

OQEP has adopted a quarterly dividend distribution policy to pay dividends after the IPO. The company said it has a track record of robust and sustainable cashflow generation and intends to maintain a dividend policy designed to return substantially all of its distributable free cashflow after providing for growth opportunities and investments.

The company expects to pay the first dividend distribution of approximately RO57.7mn ($150mn) in or around December 2024 in respect of Q3 2024 and approximately RO57.7mn ($150mn) in or around March 2025 in respect of Q4 2024, equivalent to an annualised dividend payment of approximately RO230.7mn ($600mn).

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