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The Omani sultanate has picked Bank Muscat and Bank of America to advise on the IPO of the nation's gas pipeline unit, OQ SAOC. It is widely seen as the kick-off of the country's privatisation programme.
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The IPO of OQ Gas Network could raise as much as $800 million, according to people who are familiar with the matter. OQ has also discussed the possibility of a dual listing in Muscat and Saudi Arabia however these reports are yet to be confirmed.
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The OQ share sale is part of the Oman Investment Authority’s plan to bolster state coffers. Across the energy-rich Gulf, governments are readying plans to sell assets to fund the diversification of their economies, attract international investors and boost trading volumes.
Why it matters
Oman follows Abu Dhabi and Saudi Arabia in looking at sales of stakes in energy assets, capitalising on a rebound in crude prices to attract foreign investors. Oman aims to list 35 state-owned enterprises in the next five years and plans to take one or two oil companies public this year, the CEO of the Muscat Stock Exchange explained. He also said that the Omani bourse is expected to see 200 new listings, all in a bid to keep up with neighbours in the Gulf.
