OQ Exploration & Production (OQEP), Oman’s largest oil and gas exploration and production company, has announced it plans to offer 25% of its shares in an initial public offering (IPO) on the Muscat Stock Exchange (MSE).
The wholly state-owned company is part of the OQ Group, currently under the management of the Oman Investment Authority (OIA). It is one of the top three oil and gas producers in the Sultanate, having increased its average daily production nearly 14-fold by 2023.
Ashraf Hamed Al Mamari, Group CEO of OQ, described the IPO as a key step in OQ’s strategy to unlock value and attract investment, stating the move “marks a significant milestone in enhancing OQ’s portfolio through strategic divestments and offering a compelling investment opportunity in Oman’s oil and gas sector.”
OQEP has said it aims to commence the subscription period in September 2024, pending regulatory approval from the Financial Services Authority of Oman. The listing is anticipated to follow in October 2024.
The IPO will be divided into two tranches. The first tranche, representing 60% of the total offering, will be available to eligible investors in Oman and qualified institutional and other investors in several countries. The second tranche, or Retail Tranche, will account for 40% of the offering and will be available to retail investors in Oman.
OQEP was established in 2009 and maintains extensive joint venture partnerships with international oil majors, including Shell, BP, and TotalEnergies. As of 30 June 2024, the company had a net external debt of minus $329 million.
The company has a quarterly dividend distribution policy, expecting to pay an annualised dividend of approximately OMR 230.7 million ($600 million) following the offering.
