Oman’s OQ Exploration and Production (OQEP) will raise up to 780 million Omani riyals ($2.03 billion) from its proposed initial public offering (IPO) on the Muscat Stock Exchange (MSX) after setting an indicative price range.

The IPO price range has been set at between 370 and 390 Omani baisas per share, valuing OQEP at up to OMR 3.12 billion.

The final price will be set through a book-building exercise.

The IPO comprises 2 billion shares, representing 25% of OQEP’s total issued share capital.

Six anchor Investors – Al-Hosn Investment Company SAOC, Bank Dhofar SAOG, Mars Development and Investment LLC, Oman National Investments Development Company SAOC, Salim & Partners LLC, and Social Protection Fund - have committed to subscribe for an aggregate of 20% of the IPO at the final subscription price, not exceeding 390 Omani baisas per share.

The offering will be in two tranches to eligible investors in Oman and qualified institutional and other investors in several countries. The category I investors represent 60% of the total offering. Category II, or the retail tranche, will represent 40% of the total offering for retail investors in Oman.

The subscription periods open on September 30, with the category I offer closing on October 10 and the category II offer closing on  October 9. 

Shares are expected to commence trading on the Muscat Stock Exchange (MSX) by October 28.

(Editing by Seban Scaria seban.scaria@lseg.com)