Oman State Energy Firm OQ Asks Banks to Pitch for IPOs of Two Units - Bloomberg
Oman’s state energy firm OQ SAOC has asked banks to pitch for roles on the initial public offerings of two of its units, as the sultanate pushes ahead with an ambitious privatization strategy.
OQ plans to list its exploration and production business, as well as its methanol and liquefied petroleum gas unit, according to people familiar with the matter. OQ Exploration & Production could raise around $1 billion in the IPO, the people said, asking not to be identified as the information isn’t public.
The IPOs are slated for this year, although the timing is still preliminary and may change, the people said. A representative for OQ didn’t immediately respond to requests for comment.
The Gulf nation is in the midst of efforts to deepen its capital markets through a divestment drive as it chases an upgrade to emerging-market status and seeks to bolster state coffers. Oman’s plan comes amid a broader IPO boom in the energy-rich region, with similar privatization programs in Saudi Arabia and the United Arab Emirates raising billions of dollars in recent years.
Last year, OQ floated its gas pipelines business in a record $749 million IPO for the country, as well as its oil-drilling unit Abraj Energy Services SAOG. The Omani wealth fund said in December the divestment plan would include several dozen listings over the next five years.
OQ Exploration & Production is the upstream unit focusing on assets operated by OQ. The methanol and liquefied petroleum gas plants are in Salalah, in the south of Oman.
The Muscat Stock Exchange is among the smallest bourses in the region, with a market capitalization of just over $23 billion, according to data compiled by Bloomberg. In 2022, the Gulf state tapped advisers for its stock exchange.
Oman and Bahrain are the only countries in the six-nation Gulf Cooperation Council not classified as emerging markets by MSCI Inc.
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