OQEP IPO Part of Oman Investment Authority’s Broader Divestment Strategy

Oman Investment Authority (OIA), Oman's sovereign wealth fund, has announced the Initial Public Offering (IPO) for 25 per cent of the shares of OQ Exploration & Production, a subsidiary of OQ Group, which is fully owned by OIA. This IPO is set to become the largest in Oman's history on the Muscat Stock Exchange (MSX). Of the total shares on offer, 60 per cent will be allocated to institutional investors in Oman and international, while 40 per cent will be available to individual investors. The IPO, which is Shariah compliant, is part of OIA's broader divestment strategy which was announced in mid-2022. Since then, OIA has generated over US$2.5 billion by divesting from 12 investments between 2022 and 2023. These divestments included nine private placements in various sectors and three IPOs on the Muscat Stock Exchange, including The Pearl REIF, Abraj Energy Services, and OQ Gas Networks, all of which resulted in substantial oversubscription, reflecting strong investor confidence.

OIA's approach focuses on divesting from a select number of its subsidiaries and converting them into public joint-stock companies or selling equity in these subsidiaries directly to strategic investors. This strategy aims to stimulate Oman's economy and invigorate the Muscat Stock Exchange, thereby elevating Oman to emerging market status. By listing government-owned assets publicly, OIA seeks to enhance governance, transparency, and adoption of global best practices. This policy is integral to Oman's economic diversification efforts and aims to empower the private sector to play a leading role in driving the economy. Additionally, it creates profitable investment opportunities for citizens and residents as well as attracting high-quality foreign investments.

Constantly evolving in response to global economic shifts with the aim to establish a robust institutional framework, OIA has updated its divestment strategy for the next five years, covering 2025 to 2029. OIA has also established steering committees within its subsidiaries to ensure efficient management of divestment operations. The plan includes approximately 30 investments that will be divested either through public offerings in sectors such as energy, logistics, utilities, and infrastructure or through direct sales to strategic investors in sectors including aquaculture, agriculture, and mining. With investments spanning more than 30 countries, OIA aims to remain at the forefront of the rapidly-changing global economic landscape to bolster the national economy and elevate Oman's global competitiveness. By adopting forward-thinking economic policies, OIA is opening new investment opportunities aligned with Oman's Vision 2040, which seeks to enhance economic diversification, attract foreign direct investments, and foster partnerships with local enterprises to drive greater sustainable economic prosperity for the Sultanate of Oman.