Muscat: The branch of Oman Chamber of Commerce and Industry (OCCI) at the Wilayat of Ibri in Al Dhahira Governorate hosted, today, the third roadshow on the initial public offering (IPO) of OQ Gas Networks (OQGN).
These roadshows aim to inform investors, citizens and residents about the system of subscribing to the floated shares and targeted categories. OQGN intends to float up to 49 per cent of its shares in an IPO, which provides investors with an opportunity to take part in the development journey of the company. In 2022, the company transported about 39.4 billion cubic meters of gas from six gas producers to a varied consumer base including 130 gas consumers along 4031 kilometers of gas pipelines.
Mansoor Ali Al Abdali, Managing Director of OQGN, said, “OQ Gas Networks is the exclusive operator of the main gas transportation infrastructure in the Sultanate of Oman. The company plays a vital role in connecting gas producers with consumers through its assets which include gas pipelines and networks supported by compression and gas supply stations, which generate transportation and delivery revenues.
Al Abdali explained that OQGN intends to approve a semi-annual dividend distribution policy to pay the profits of shares in cash after the IPO. The company expects to distribute dividends amounting to OMR33 million for the first nine months of 2023 in January 2024 and OMR11 million for the last three months of 2023 in April 2024.
He pointed out that the demand for gas in the Sultanate of Oman has increased. Furthermore, he noted that it is expected to be in the range of 37.7 billion square meters and 54.5 billion square meters by 2043 with the rise in economic activity and manufacturing in all vital sectors in Oman.
For his part, Saif Al Badi, board member of OCCI and chairman of OCCI’s branch at Al Dhahirah Governorate, said: “IPOs contribute to attracting national and foreign investments in governmental assets and boosting the savings of individuals. This results in increasing the cash flows and creating foreign partnerships that enhance the opportunities to exchange expertise and experiences.”
He added, “IPOs also contribute to broadening the ownership of companies and achieving mutual benefits. OQGN’s IPO is one of the biggest underwritings in the history of Oman. Listing the shares of the company in the Muscat Stock Exchange (MSX) will contribute to enriching it with more investors and underwriters from Omani citizens and residents. The company has great capabilities such as the advantage of being the exclusive gas distributor in the Sultanate of Oman, which provides guarantees for generating revenues and profits.”