#Oman’s OQ Raises $489 Million With Methanol Unit (OQBI) IPO - Bloomberg

Oman’s OQ Raises $489 Million With Methanol Unit (OQBI) IPO - Bloomberg

Oman’s state energy company raised $489 million with the initial public offering of its methanol and liquefied petroleum gas unit, amid continued demand for Middle East listings.

OQ SAOC sold a 49% stake in Oman Base Industries SAOG at the top end of the price range of 111 baisas ($0.29) per share, according to an announcement. At that price, the firm would be valued at $1 billion.

The deal got aggregate demand for 387 million riyals from institutional and retail investors. Falcon Investments LLC, Gulf Investment Corp., Saudi Omani Investment Co. and Social Protection Fund, had committed to subscribe for about 30% of the offer as anchor investors.

Shares are expected to start trading on the Muscat Stock Exchange around mid-December.

To attract investors, OQBI plans to pay about $85 million in dividends for 2024. For 2025 and 2026, the payout will be at least 5% higher than the previous year.

The firm reported revenue of $510 million and an adjusted EBITDA margin of 43.1% for the year ended December 2023.

OQ raised a record $2 billion from an IPO of its exploration and production unit in October. The deal comes at a time when the sultanate is in the midst of an ambitious privatization drive.

Morgan Stanley, Bank Dhofar and Bank Muscat have been named joint global coordinators on the OQ BI offering, while Kamco Investment Co. and BSF Capital have been appointed as joint bookrunners.