OQEP receives subscription commitments from main investors

Muscat: OQ Exploration and Production (OQEP) Company has received final commitments from the main investors to subscribe up to OMR 156 million in the offering based on the maximum price range of 390 baisas per share, in accordance with the terms set out in their master investment agreements.

Azzan bin Mohammed Al Abdul Latif, Deputy Head of Public Subscriptions Implementation at OQ Group, explained that 20 percent of the offering size in OQ Exploration and Production Company was allocated to major investors from Omani institutions and included institutions with a high local reputation, ranging from government and private investment funds to those from the banking sector as well, noting that this segment of major investors is all local and includes the Protection Fund as a major investor with a share of more than 8 percent of the offering.

He said in a statement to the Oman News Agency that the segment of primary investors in this offering is smaller compared to previous subscriptions as a percentage of the total offering. On the other hand, the size of the individual segment has been increased because it is the primary target of such subscriptions.

He added that 40 percent of the shares are offered for subscription, equivalent to 312 million Omani riyals, for institutions, whether local or non-local. It is hoped that the demand will be strong and that a large number of investors from the Sultanate of Oman will subscribe to it, which will enhance the circulation of capital in the country and its local investment, which will enhance the activity of the Muscat Stock Exchange.

He pointed out that the advantages of offering OQ Exploration and Production Company have never been available to investors, whether individuals or institutions, and therefore the opportunity is available to citizens wishing to invest and participate in owning natural resources assets in the Sultanate of Oman.

He stressed that the offering structure and division were designed to allocate 40 percent of the offering to the individual category, where the individual category is divided into two equal tranches (20 percent for each tranche).

The first tranche is called the “Small Individual Investors Tranche” and includes requests starting from 500 shares up to 28,500 shares.

While the second tranche is the Large Individual Investors Tranche and includes all requests from individual investors starting from 28,600 shares without specifying a maximum subscription ceiling.

He explained that this restructuring aims to provide fair opportunities for all segments of society, benefit from previous subscriptions, give citizens an advantage and encourage them to invest with a 10 percent discount on the final price, equivalent to 351 baisas, as it is the maximum price in the price range.

Azzan Al-Abdul Latif said that OQ Exploration and Production is one of the largest producers of oil and gas in the Sultanate of Oman, and its production in 2023 constituted about 14 percent of the Sultanate of Oman’s production of oil, gas and condensates. Rather, it is one of the most important companies that have oil and gas reserves.