OIA to Launch IPOs in Oman Focusing on Energy, Services & Logistics Assets

Oman’s sovereign wealth fund plans to launch initial public offerings in key sectors from 2024 to 2028 as part of its divestment strategy to raise additional market funds.

The Oman Investment Authority (OIA) will focus on energy, services, and logistics assets, aiming to boost revenues over the next five years, it said in a post on X, formerly known as Twitter.

OIA generated 1 billion Omani rials (US$2.59 billion) from divestments in subsidiaries and affiliated companies during 2022 and 2023.

The wealth fund plays a crucial and strategic role in implementing the economic diversification goals outlined in the sultanate’s Vision 2040 program.

In its annual report released in August, the government-controlled fund revealed that its assets under management rose to 19.2 billion rials (US$49.72 billion) by the end of 2023, representing a rise of 11.6 percent compared to the previous year.

“The divestment plan of OIA continues to achieve its national targets. In 2022 and 2023, it successfully generated revenues exceeding 1 billion rials (US$2.59 billion) after divesting from 12 investments, while continuing to establish an institutional approach by updating the plan and creating steering committees to ensure its effective management,” OIA said in its statement.

The wealth fund added that the steering committees will be set up in various companies to oversee the divestment process.

OIA also plans to roll out private placements, encouraging investment in agriculture, aquaculture, and mining to support business development.

Launched in 2022, OIA’s divestment strategy aims to attract foreign investment, expand the Muscat Stock Exchange, and restructure capital for greater efficiency. Other goals include repaying debts, localizing new technologies, fostering partnerships with international investors, and reinvesting revenues from divested assets.

Oman’s state energy firm OQ announced on Sept. 9 that it plans to offer a 25 percent stake in its exploration and production business through an IPO next month, subject to regulatory approvals.

Oman’s decision to boost IPO activity comes as the GCC region experiences a surge in public offerings.

In August, the Kuwait Financial Center, also known as Markaz, reported that the region raised US$3.6 billion through 23 offerings in the first half of the year, with Saudi Arabia leading the market, raising US$2.1 billion, a 141 percent increase year on year.