DUBAI - OQEP, the exploration and production business of Oman's state oil group, has raised $2.03 billion from its initial public offering (IPO) on the local stock exchange, it said on Thursday, in the Gulf country's biggest ever listing.

OQEP, which is floating around 2 billion shares equal to a 25% stake, said in a statement the offering was priced at the top of its indicative range of 370-390 baizas per share and was oversubscribed by around 2.7 times, including anchor investors.

The listing is part of a privatisation programme by state-owned energy group OQ, which is helping Oman - a small non-OPEC oil producer - to diversify its economy and cut its debt.

It follows last year's IPOs of OQ's pipeline business , which raised $771 million, and oil and gas drilling business Abraj Energy Services, which raised $244 million.

Logistics company Asyad Group is also planning an IPO of its Asyad Shipping subsidiary by the end of 2024, Reuters reported in July, citing sources.

Following the IPO, which is also set to be the Gulf region's biggest so far this year, OQEP will have a market capitalisation of around $8.1 billion, making it the largest company on the Muscat stock exchange, where shares are expected to start trading on or around Oct. 28, OQEP said.

(Reporting by Federico Maccioni; Editing by Tom Hogue and Mark Potter)