Bank Muscat successfully manages OQ Gas Networks IPO

Muscat: Bank Muscat, the leading financial services provider in the Sultanate of Oman,announced that its Investment Banking Division successfully acted as the Issue Manager and Joint Global Coordinator for the OMR 288 million (c. USD 748 million) initial public offering (IPO) of OQ Gas Networks (OQGN) on the Muscat Stock Exchange (MSX).OQGN is the exclusive owner and operator of the company’s natural gas transportation network.

OQGN offered a total of 49 per cent of its total issued share capital equivalent to 2,122,005,720 shares at the top end of the price range i.e. 140 Baizas per share, implying a market capitalisation of c. OMR 606 mn (c. USD 1.6bn) and marking the Sultanate of Oman’s largest IPO ever. The Offering included a Category I offer for institutional investors representing 40 per cent of the total offer size, a sale to anchor investors representing 30 per cent of the total offer size, and a Category II to retail investors representing the remaining 30 per cent.

Saudi Omani Investment Company, a wholly owned entity of the Public Investment Fund of the Kingdom of Saudi Arabia, Falcon Investments, a subsidiary of Qatar Investment Authority, the Sovereign Wealth Fund of the State of Qatar, and Fluxys International SA/NV have each participated with a 10% share of the issue volume and are anchor investors for this offering.

Total demand for OQGN shares amounted to c. OMR 4bn (c. USD 10bn) from local, regional and international investors. Overall, the book for the IPO was c.14x subscribed led by marque international investors including many first-time investors in Oman.

Expressing the success of the IPO, Khalifa bin Abdullah Al Hatmi, Deputy General Manager, Investment Banking and Capital Markets, Bank Muscat, said: “We are pleased to have successfully managed the largest IPO ever in Oman and continue to support the vital part of Government of Oman’s announced privatisation plan. The unprecedented investor interest in this IPO further strengthens our strong track record in the investment banking business. OQGN is the biggest capital market event in Oman in over a decade and we look forward to further supporting the capital market activity in the Sultanate through our suite of integrated solutions.”