#Oman State Energy Firm Is Said to Pick Banks to List Two Units - Bloomberg

Oman State Energy Firm Is Said to Pick Banks to List Two Units - Bloomberg

Oman’s state energy company OQ SAOC has picked banks including HSBC Holdings Plc and Morgan Stanley to work on the planned initial public offerings of two of its units, according to people familiar with the matter.

OQ has appointed HSBC to the listing of its exploration and production business while Morgan Stanley will work on the IPO of its methanol and liquefied petroleum gas unit, the people said, asking not to be identified as the information isn’t public.

OQ Exploration & Production could raise about $1 billion, which would make it the country’s biggest on record, Bloomberg News reported in February. Both IPOs are slated for this year although timing may change, people familiar with the matter said at the time.

Local banks will also work on the two planned IPOs, the people said.

Representatives for HSBC and Morgan Stanley declined to comment. OQ wasn’t available for comment.

Oman, the biggest Persian Gulf oil producer that’s not a member of OPEC, is hoping an influx of capital from state asset sales will boost industries such as energy, transport and tourism. That’s part of a broader trend of divestments in the energy-rich region as larger neighbors Saudi Arabia and the United Arab Emirates also look to diversify their economies to prepare for a post-oil age.

The Gulf nation is also chasing an upgrade to emerging market status by broadening its capital markets. The Muscat Stock Exchange is among the smallest bourses in the region.

Last year, OQ floated its gas pipelines business in a record $749 million IPO for Oman as well as its oil-drilling unit Abraj Energy Services SAOG.

Oman’s wealth fund is also planning IPOs of companies it owns, including the state power utility and a logistics firm, Bloomberg News has reported.