Muscat: The subscription period for the initial public offering (IPO) of OQ Gas Networks (under transformation) (OQGN or the Company) will open on Tuesday, September 26.
The offering comprises the sale of a total of 2,122,005,720 existing shares by OQ S.A.O.C, (“OQ”) directly and indirectly through Oman Energy Trading Company Limited (“OETCL”) and Oman Oil Services Limited (“OOSL” together with OQ and OETCL, the “Selling Shareholders”), representing 49 per cent of OQGN’s total issued share capital The offer is expected to raise to OMR 297 million (equivalent to $771 million) at the top of the price range, valuing OQGN at up to OMR606 million (equivalent to $1,574 million).
Three Anchor Investors - Saudi Omani Investment Company, a wholly owned entity of the Public Investment Fund, Falcon Investments, a subsidiary of Qatar Investment Authority, and Fluxys International SA/NV - have irrevocably committed to subscribe to the Offering at Bzs 140 per share, subject to the terms contained in their respective anchor investment agreements.
The shares will be offered in parallel, across two categories:
The Category I subscription period, for non-individual investors, will run from 26 September to 9 October 2023. Category I is open to institutional investors, representing 40% of the total Offer size. The subscription price range will be Bzs 131 to Bzs 140 per share.
The Category II subscription period, for individual investors, will run from September 26 to October 5. Category II is exclusively open and reserved for individual investors and represents 30% of the total Offer size. Category II shares will be offered at a discounted maximum price of Bzs 126 per Offer Share, providing a 10% discount on the maximum price of Bzs 140 per share. Exclusively reserving 30% of the total Offer size for individual investors and offering shares at a discounted price aim to provide greater access to potential individual investors in the IPO.
The IPO will allow OQGN, the exclusive operator of the natural gas transportation network in Oman, to move the Company into the next chapter of growth. It is part of a broader divestment programme envisioned by the government and being implemented by the Oman Investment Authority (OIA) - the sovereign wealth fund of the Sultanate of Oman. It offers an opportunity for Omani and international investors to participate in Oman’s Vision 2040, the long-term national development plan that aims to make Oman a prosperous, competitive and sustainable nation and to rapidly diversify its economy.
In January 2024, OQGN intends to pay a dividend of OMR 33,000,000 for the first 9 months of 2023 and expects to pay a second dividend distribution of around OMR 11,000,000 for the last three months of 2023, around April 2024.
OQGN shares are expected to commence trading on the MSX on or about October 24.