OQ Base Industries (OQBI), a prominent producer of methanol, ammonia and LPG, has announced the price range for its initial public offering (IPO) on the Muscat Stock Exchange, setting it at between OMR 106 to OMR 111 per share.
The company aims to raise up to OMR 188 million ($490 million) at the top end of the range, with a company valuation of OMR 385 million ($1 billion).
The IPO offering consists of 1.69 billion shares, representing 49% of OQBI’s total issued capital, while the parent company OQ SAOC retains the remaining 51%.
Four anchor investors have been named, including Falcon Investments, a Qatar Investment Authority subsidiary, along with Kuwait’s Gulf Investment Corporation, the Saudi Omani Investment Company, and the Social Protection Fund of Oman. Each investor has committed to subscribing to 7.5% of the offering, amounting to 30% of the total offer at the top price range.
The IPO is divided into two categories: Category I for institutional investors, comprising 30% of the offer, will undergo a bookbuilding process to set the final price. Meanwhile, the Category II offer for retail investors is priced at BZS 111 per share. The subscription period starts on November 24, 2024, with trading expected to begin on December 15, 2024.
OQBI has outlined plans for a dividend payout of OMR 32.7 million for the fiscal year 2024, distributed in two parts in January and April 2025.
The IPO is managed by Bank Dhofar SAOG, Bank Muscat SAOG, and Morgan Stanley & Co. International, acting as joint global coordinators, with Bank Dhofar SAOG and Bank Muscat SAOG also serving as issue managers.
This offering marks the fourth divestment by OQ SAOC over the past two years, following the listing of its exploration and production business in October, raising $2.03 billion.
Earlier this year, the Oman Investment Authority (OIA) revealed it is working on a new five-year divestment strategy, focusing on launching IPOs in strategic sectors, including energy, services and logistics.Â
