Oman’s OQEP to offer 2 billion shares for public subscription

The largest IPO in the history of the Omani capital market.

Muscat: The Financial Services Authority approves OQ Exploration & Production’s prospectus to offer 2 billion shares for public subscription, representing 25% of its capital

OQ Exploration and Production Company is one of the OQ companies affiliated with the Oman Investment Authority. The offering of shares for subscription embodies the Oman Investment Authority’s orientation to divest from some government assets, and is a translation of the objectives of “Oman Vision 2040” aimed at attracting national and foreign investments. This offering also comes as part of diversifying and expanding the shareholder base.

This offering will provide investors with the opportunity to invest in one of the leading companies specialized in oil and gas exploration and production in the Sultanate of Oman. The bulletin explains that the subscription period for the company’s shares will extend for two weeks, starting from September 30 for the first and second categories and continuing until October 10, 2024 for the first category, while the subscription for the second category, represented by individuals, will close on October 9.

The bulletin explained that the number of shares offered for subscription is divided into three main categories: the first: the institutional category, the second: the individuals category, and the third: the main investors category. With regard to the offering price, the bulletin indicates that the first category, which is the institutional category, may determine its price range by building an order book, where the range was determined from 370 to 390 baisas per share.

The share price for Omani individuals will be calculated at 351 baisas per share, based on the highest price of 390 baisas minus the 10 percent discount, with the aim of encouraging Omanis to participate in this type of issue and enabling them to exploit the available investment opportunities. As for non-Omanis, the share price will be 390 baisas. The prospectus indicates that the share of the first category, represented by institutions, amounts to 40 percent of the total offering, and is divided equally between local institutions on the one hand and regional and international institutions on the other hand.

The minimum subscription for this category will be 100,000 shares without specifying the maximum subscription limit. As for the category of individuals referred to as the second category in the prospectus, 40 percent of the total offering will be allocated to them. The minimum subscription limit for this category will be 500 shares and the maximum will be 28,500 shares.

While 20 percent of the offering volume was allocated to the category of major investors, which represents qualified investors from inside and outside the Sultanate of Oman, as indicated in the prospectus.

The Financial Services Authority confirms that the issuance prospectus is the primary reference for information and data related to OQ Exploration and Production Company, as it is a prospectus prepared by the issuance manager in accordance with legal requirements to help the investor make his investment decision and determine his investment orientations in a sound and systematic manner.