Oman's OQ Gas Networks IPO Subscription Opens

The subscription period for the initial public offering (IPO) of OQ Gas Networks (OQGN) opens today, September 26, 2023. OQGN, the sole operator of Oman’s gas transportation system, is offering 49% of its total issued share capital through the IPO. The offer is expected to raise up to RO297 million (US$771.43 million) at the top of the price range, valuing OQGN at up to RO606 million (US$1.57 billion).

Three Anchor Investors – Saudi Omani Investment Company, a wholly owned entity of the Public Investment Fund, Falcon Investments LLC, a subsidiary of Qatar Investment Authority, and Fluxys International – have irrevocably committed to subscribe to the offering at 140bz (36 cents) 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 September 26 to October 9, 2023. Category I is open to institutional investors, representing 40% of the total offer size. The subscription price range will be 131bz (34 cents) to 140bz (36 cents) per share.

The Category II subscription period, for individual investors, will run from September 26 to October 5, 2023. 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 126bz (33 cents) per offer share, providing a 10% discount on the maximum price of 140bz (36 cents) 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 program envisioned by the government and being implemented by Oman Investment Authority (OIA) – the sovereign wealth fund of Oman.

In January 2024, OQGN intends to pay a dividend of RO33 million (US$85.71 million) for the first nine months of 2023 and expects to pay a second dividend distribution of around RO11 million (US$28.57 million) for the last three months of 2023, around April 2024. OQGN shares are expected to commence trading on the MSX on or about 24 October 2023.