- OQ Gas Networks, the pipeline arm of Oman's state oil firm OQ, is planning to generate up to 297 million Omani riyals ($771 million) from its IPO, which could potentially become the largest listing in the country's history. OQ has established the price range for OQ Gas Networks (OQGN) IPO at 131 baisas to 140 baisas per share. This pricing would give OQGN an estimated valuation of up to 606 million riyals ($1.57 billion), as per an announcement on the Capital Market Authority's website on Sunday.
- In this offering, the state-run firm is putting up approximately 2 billion shares, equivalent to a 49% stake in OQGN, through Oman Energy Trading Company and Oman Oil Services Limited. Furthermore, OQGN revealed in a separate statement on Monday that Saudi Omani Investment Company (a unit of the Public Investment Fund), Falcon Investments (a subsidiary of Qatar Investment Authority), and gas infrastructure company Fluxys Belgium are each purchasing 10 percent of the shares offered.
Why it matters
OQ, which is under the ownership of the Oman Investment Authority, has plans to privatize several assets over the next five years, as revealed by Mansoor Al Abdali, OQGN's managing director, in an interview with The National this month. Additionally, OQGN aims to expand its operations and venture into the fields of hydrogen and carbon capture, utilization, and storage (CCUS), positioning itself as an infrastructure provider for hydrogen transportation following a preliminary agreement.
