OQGN IPO to become Oman’s largest-ever initial public offering

Muscat: OQ Gas Networks (under transformation) (OQGN) announced that, following the successful completion of the bookbuilding and public subscription process for its initial public offering (IPO), it has set the final offer price at 140 baisas per share.

Having received overwhelming demand from investors, the final offer price was set at the top of the price range by OQ in its capacity as the selling shareholder.

A total of 2.1 billion ordinary shares, representing 49 percent of OQGN’s issued share capital, were offered, which will generate approximately OMR 288 million ($750 million) of gross proceeds for the selling shareholder upon settlement, making the OQGN IPO the largest ever IPO in Oman.

This includes commitments from anchor investors amounting to approximately OMR89 million ($230 million).

Immediately following completion of the OQGN IPO, OQ will continue to own 51 percent of OQGN’s share capital.

The offering saw strong investor demand and oversubscription for both the Category I offering and Category II offering. Total demand for OQGN shares amounted to OMR4 billion ($10 billion). Including anchor investors the book for the IPO was 14x oversubscribed.

OQGN shares are expected to commence trading on the Muscat Stock Exchange (MSX) on 24 October, 2023, under the symbol ‘OQGN’ and ISIN ‘OM0000009072’.

Upon listing the Company will have a market capitalisation of OMR 606 million (41.6 billion), which will make OQGN the third largest company on the MSX by market capitalisation.

OQGN holds a natural monopoly over critical gas transportation infrastructure in Oman as the exclusive owner and operator of the NGTN. OQGN aims to champion the management and development of the NGTN through innovative and sustainable solutions.

With the support of its around 480 talented individuals as at 30 June 2023, the Company prioritizes maintaining high standards of operation and maintenance, which is reflected in the OQGN’s operational track-record, having delivered 99.99 percent gas availability over the last 10 years and recorded no gas supply interruptions in 2022. OQGN’s health and safety record is also testament to its commitment to applicable occupational health and safety standards.

OQGN actively considers the interests of society at large and the economic development of Oman in the course of its operations and strives to maximise its engagement in and contribution to the Omani communities and supporting the Government’s efforts towards environmental sustainability.