Oman's OQ Gas Networks (OQGN) has successfully completed bookbuilding for its initial public offering (IPO), raising over OMR288 million ($750 million). The IPO was oversubscibed 14 times with a total demand for OQGN shares amounting to OMR4 billion ($10 billion).

OQ Gas Networks (OQGN) has announced that, following the successful completion of the bookbuilding and public subscription process for its initial public offering (IPO), it has set the final offer price at Omani Bzs 140 per share.

Having received overwhelming demand from investors, the final offer price was set at the top of the price range by OQ in its capacity as the selling shareholder, a statement said.

A total of about 2.1 billion ordinary shares, representing 49% of OQGN’s issued share capital, were offered, which will generate approximately OMR288 million ($750 million) of gross proceeds for the selling shareholder upon settlement, making the OQGN IPO the largest IPO in Oman.

Oversubscribed

This includes commitments from anchor investors amounting to approximately OMR89 milion ($230 million). Following completion of the OQGN IPO, OQ will continue to own 51% of OQGN’s share capital.

The offering saw strong investor demand and oversubscription for both the Category I offering and Category II offering. Total demand for OQGN shares amounted to OMR4 billion ($10 billion). Including anchor investors, the book for the IPO was 14x oversubscribed, it said.

OQGN shares are expected to commence trading on the MSX on October 24. Upon listing the company will have a market capitalisation of OMR606 million ($1.6 billion), which will make OQGN the third largest company on the MSX by market capitalisation.

OQGN holds a natural monopoly over critical gas transportation infrastructure in Oman as the exclusive owner and operator of the NGTN. -TradeArabia News Service

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