Muscat – The market value of OQ Exploration and Production Company (OQEP), following its listing on the Muscat Stock Exchange (MSX) later this month, will exceed RO3bn, representing approximately 11.6% of the total market capitalisation of companies listed on the Omani bourse, according to a top official of the MSX.

In a statement to the Oman News Agency, Haitham bin Salim al Salmi, Chief Executive Officer of the Muscat Stock Exchange, said that OQEP’s entry into the Omani bourse will mark a significant step toward the MSX’s potential upgrade to emerging market, particularly in the criteria of the market capitalisations of listed companies.

He described the proposed listing of OQEP on the MSX as historic, stating it will enhance the Muscat Stock Exchange’s position as an attractive investment destination.

The initial public offering (IPO) of OQEP is the largest in Oman’s history and the biggest in the region this year. The offering comprises a total of two billion shares, representing 25% of OQEP’s total issued share capital.

The IPO is expected to raise up to RO780mn at the top of the offer price range, valuing OQEP at up to RO3.120bn, according to OQEP’s IPO prospectus.

The subscription period for OQEP IPO began on September 30. The public subscription for OQEP shares for individuals and retail investors, representing 40% of the offered shares, will close on Wednesday, while the subscription for institutions, also representing 40% of the offered shares, will close on Thursday. Anchor investors have subscribed to 20% of the offered shares at the top end of the price range (370bz-390bz).

Salmi pointed out that the Muscat Stock Exchange has worked diligently in recent years to achieve emerging market status as classified by global rating agencies and institutions that set precise criteria for evaluating stock exchanges, such as liquidity and trading volumes of listed companies.

He emphasised that the MSX has been committed to providing an attractive and rich investment environment that will facilitate its growth in the near future. Earlier this year, the MSX witnessed the official launch of market-making activities.

Salmi also announced that the Muscat Stock Exchange will officially introduce ‘Margin Trading’ and ‘Securities Lending and Borrowing’ activities in cooperation with the Financial Services Authority (FSA) and the Muscat Clearing and Depository Company (MCD).

The CEO of the Muscat Stock Exchange explained that these initiatives will add investment value for participants by providing liquidity, which will enhance trading activity on the exchange.

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