Sunday 15 / December / 2024
Muscat: Muscat Stock Exchange (MSX) celebrated today the listing of OQ Base Industries under the ticker symbol (OQBI), and the commencement of its share trading following the successful Initial Public Offering (IPO) of 49% of its capital.
The IPO raised a total of approximately OMR387 million (exceeding USD 1 billion), with a subscription rate 2.1 times higher than the shares offered, reflecting strong confidence from local, regional and international investors in OQ Base Industries’ diverse and attractive portfolio, as well as its ability to deliver sustainable growth opportunities in a growing market.
The bell ringing ceremony today on the trading floor at the MSX commenced the listing and trading of OQBI’s shares under the auspices of Sheikh Ghuson Hilal Al Alawi, Chairman of State Audit Institution.
The success of the IPO reflects the strength of OQBI’s value proposition and its commitment to advancing Oman’s economic objectives by attracting investment and positioning the Muscat Stock Exchange as a compelling destination for global investors.
Ali Mohammed Al Lawati, Chairman at OQBI, stated: "Today marks an important milestone as OQ Base Industries transitions from a private to a publicly listed company. The IPO is the culmination of the hard work and dedication of our exceptional team, and it reflects the deep strategic value that OQBI holds within Oman and beyond.”
The final offer price was set at 111 baizas per share for all investor categories and raised c. OMR 188 million (c. USD 489 million).
The IPO was subscribed 2.1 times, with total demand amounting to approximately RO 387 million (over c. USD 1 billion), reflecting strong confidence from local, regional, and international investors in OQBI’s attractive, diversified portfolio and its opportunities for sustainable growth and value creation in an evolving market.
OQBI is in a unique position, as it operates in the tax-exempt Salalah Free Zone in the south of Oman, close to Oman’s largest port, Port of Salalah, acting as a gateway to markets across Europe, MENA, and wider Asia. Oman’s strategic location has been a key strength, supporting the Company’s competitive business model and increasing the global appeal of its products.
The Company plans to distribute RO 32.7 million in dividends for the fiscal year 2024. In addition, OQBI intends to distribute dividends twice each fiscal year after the Offering, reflecting its expectation of strong cash flow and expected long-term earnings potential. This will allow the Company to retain sufficient capital to fund ongoing operating requirements and continued investment for long-term growth.
OQBI’s public listing marks a decisive step for its sustainable growth trajectory, aligned with OQ Group’s broader vision of driving leadership and innovation in the energy sector.
