- Oman's OQ Gas Networks, the pipeline division of the state oil company OQ, has successfully concluded its initial public offering (IPO), raising 288 million Omani rials ($750 million) after pricing it at the top end of the range. This IPO is the largest ever in the Sultanate of Oman. The offering saw "overwhelming demand" from a broad spectrum of local, regional, and international investors, with the total gross demand surpassing 4 billion rials ($10 billion), resulting in a remarkable oversubscription level of 14 times, including anchor investors.
- The final offer price is set at 140 baizas per share following the completion of the book-building and public subscription process. OQGN offered nearly 2.1 billion ordinary shares, representing 49% of the issued share capital. Post-IPO, OQ will retain a 51% ownership of OQGN's share capital. Trading of OQGN's shares is expected to commence on the Muscat Stock Exchange (MSX) on October 24 under the symbol "OQGN," with a market capitalization of 606 million rials, making it the third-largest company on the MSX by market capitalization.
Why it matters
OQGN, with a monopoly over essential gas transportation infrastructure in Oman, recorded zero gas supply interruptions in 2022. The network comprises pipelines, metering facilities, compressor stations, gas supply stations, and block-valve stations. In the previous year, the company transported 39.4 billion cubic meters of gas from six producers to approximately 130 consumers through 4,031 kilometers of pipelines, supported by three compressor stations and 25 supply stations.