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Oman’s OQ Exploration and Production (OQEP), touted as the largest IPO in the country’s history, has set the final price at 390 baisa ($1) per share for the Category I and anchor offering that raised 780 million Omani riyals ($2.02 billion) pre discount for Omani nationals.
The final price is at the top of the price range of Bzs 370 to Bzs 390, which the company said reflects strong demand from local, regional and institutional investors, including commitments from six anchor investors, to subscribe for an aggregate of 20% of the offering at the final subscription price.
Aggregate demand of OMR 2.1 billion came from local, regional and international investors across Category I and Category II offerings with books 2.7 times oversubscribed - including anchors - at the final IPO price.
Institutional investors generated more than OMR 1 billion in demand, excluding anchors, in the Category I offering resulting in oversubscription levels by 3.4 times. Those who submitted orders offering at Bzs 390 per share will be allocated 29.8% of their order demand.
Support from over 113,000 individual subscribers generated more than OMR 610 million demand for the Category II offering.
The company’s Category II offerings were oversubscribed 2.2 times, with small retail allocated 100% of their demand, up to 8,000 shares and then 23% of their demand above this level. Large retail investors were allocated 32.6% of their demand.
A total of 2 billion ordinary shares, representing 25% of OQEP’s issued share capital, were offered to investors. OQ SAOC will continue to own the remaining 75% of the company’s share capital. Upon listing, OQEP will have a market capitalisation of OMR 3.12 billion, making it the largest company on the Muscat Stock Exchange (MSX) by market capitalisation.
OQEP shares are expected to commence trading on the MSX on or around 28 October 2024.
(Writing by Bindu Rai, editing by Brinda Darasha)
