#Oman’s OQ Said to Eye $2 Billion from Exploration Unit IPO - Bloomberg

Oman’s OQ Said to Eye $2 Billion from Exploration Unit IPO - Bloomberg

Oman’s state energy company OQ SAOC is looking to raise about $2 billion by selling shares in its exploration and production business in an initial public offering that’s set to be the Gulf country’s biggest on record.

The deal would value all of OQ Exploration & Production SAOG at about $8 billion, according to two people with knowledge of the matter, who declined to be identified discussing confidential information. OQ plans to sell a 25% stake in OQEP, as the business is known, it said Monday, without disclosing details on valuation.

To help attract investors, the firm plans to pay out $600 million in annual dividends each year from 2024 through 2026. In 2025 and 2026, the company also plans to pay a performance-linked dividend equal to 90% of cash flow after investments, according to a statement.

The IPO — and the promise of dividends — comes as Brent crude last week fell to the lowest level since 2021 on concerns over global demand. Oman, Saudi Arabia and the United Arab Emirates are all members of the OPEC+ producers’ group which has been cutting production for several years to help prop up the market.