Dubai: Oman’s state-run oil and gas company OQ Exploration and Production (OQEP) reveals the price range for its upcoming initial public offering (IPO) on the Muscat Stock Exchange, with shares priced between $0.96 (Dh3.53) to $1.01(Dh3.71).
The company plans to offer 2 billion shares, representing 25 per cent of its total, with the listing expected by October 28, pending final regulatory approval.
OQ announced its intention to list OQEP on September 9, aiming to enhance future growth.
This IPO follows the listings of other OQ subsidiaries, including Abraj Energy Services and OQ Gas Networks.
The share offering will be divided into two segments: One for institutional investors and another for retail investors.
Institutional investors will receive 800 million shares, priced between $0.96 (Dh3.53) and $1.01 (Dh3.71), with the final price determined through a book building process, which is the process of price discovery that requires the underwriter to call forth bids from various institutional investors such as fund managers and others.
Anchor investors will acquire 400 million shares, constituting 20 per cent of the offering, with several firms already committed. Omani institutions like Al-Hosn Investment Co. SAOC and Bank Dhofar SAOG have pledged around $405 million (Dh1.4 bilion) at the maximum price.
Retail investors will be offered 800 million shares, split equally between large and small applicants.
Omani individuals will benefit from a 10 per cent discount, paying a maximum of $0.91 (Dh3.34) per share, while non-Omani individuals will pay up to $1.01 (Dh3.71).
The retail offering will be open for subscription from September 30 to October 9, while the institutional offering will close on October 10.
OQEP intends to use the proceeds to focus on value creation and sustainable practices in the oil and gas sector. The company has announced a quarterly dividend policy, with the first pay-out of $149 million (Dh547 million) expected in December 2024.
Post-IPO, OQ will retain a 75 per cent stake in OQEP and has committed to a 365-day lock-up period for the remaining shares.
