Omani OQGN IPO Expected to Open for Subscription Soon

OQ Gas Networks (OQGN) on Monday announced its intention to proceed with an initial public offering (IPO) and listing on the Muscat Stock Exchange (MSX). The IPO subscription period is expected to commence in September, after receiving the required approval from the Capital Market Authority (CMA). The listing of OQGN shares on the MSX is expected to take place in October 2023, as announced by OQGN during an event. The selling shareholders expect to sell up to 49% of the total issued share capital of OQGN in the IPO. Following the offering, OQ will continue to hold a minimum of 51% shareholding, according to a press statement. OQGN’s listing on the MSX will provide investors with access to the growth of the company, which holds a natural monopoly over essential gas transportation in Oman. The offering is available to eligible investors in Oman and qualified institutional and other investors in several countries (Category I) and retail investors in Oman (Category II). OQGN said that the IPO will be conducted in the manner approved by the CMA and will be offered in two tranches. Category I represents 70% of the total offering (with 30% of the offer shares reserved for anchor investors) and will be made available to eligible investors in Oman and qualified institutional and other investors in several countries. Category II represents 30% of the total offering for retail investors.

Dividend policy

According to the company’s statement, OQGN intends to adopt a semi-annual dividend distribution policy to pay dividends in cash after the offer. The company expects to pay the first dividend distribution of RO33 million (US$85.72 million) for the first nine months of 2023 around January 2024 and expects to pay the second dividend distribution of RO11 million (US$28.57 million) for the last three months of 2023 around April 2024. OQGN currently expects to pay a dividend for the fiscal year ending on December 31, 2024, which will be the higher of 90% of the company’s profit for the year or a 5% increase on the aggregate dividends paid for 2023. For 2025, the company expects to pay a dividend, which will be the higher of 90% of the profit for the year ending December 31, 2025, or a 5% increase on the dividends paid for 2024. Mansoor al Abdali, managing director of OQGN, said, “OQGN provides critical infrastructure to deliver gas that supports the industries and economy of Oman. This listing, which we are proud to conduct on the Muscat Stock Exchange, will allow us to advance the company into its next growth phase. The core focus of OQGN will remain on delivering vital resources supporting the growth of our customers and Oman. Our work is underlined by a commitment to reliability, efficiency, safety, and sustainability.” Talal al Awfi, OQ Group CEO and OQGN chairman, said, “The IPO of OQGN is part of a broader divestment program envisioned by the government and being implemented by Oman Investment Authority. This marquee offering is 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.” He added, “The listing of OQGN is in line with this ambition while enriching the dynamically developing Omani stock market. We look forward to the listing on the MSX and are excited for what’s to come.” Bank Muscat, BofA Securities, and EFG-Hermes UAE Limited have been appointed as joint global coordinators, and Bank Muscat has been appointed as the issue manager for the OGQN IPO.