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OQGN plans Oman’s biggest IPO of RO212mn

2 Sep 2023 By GULAM ALI KHAN

Muscat – Oman’s stock market regulator, the Capital Market Authority (CMA), is currently reviewing the prospectus for the long-awaited initial public offering (IPO) of OQ Gas Network Company (OQGN), the sole operator of Oman’s gas transportation system.

According to an Oman News Agency report, the size of OQGN’s IPO is expected to be approximately RO212mn and the company will offer 49% of the share capital in the IPO. This will mark the largest initial public offering in Oman’s capital market history.

OQGN holds a natural monopoly over critical gas transportation infrastructure in Oman as the exclusive owner and operator of the natural gas transportation network.

The company manages over 4,030km of gas pipeline network across the sultanate. This extensive network supplies gas to power plants, water desalination plants, cement and aluminum factories, aluminum smelters, fertiliser and methanol plants, refineries, steel and cement factories, oil companies, and more.

Over the last 10 years, OQGN has achieved a gas availability rate of over 99.99%.

By offering shares through the IPO, OQGN seeks to leverage the financing advantages provided by the capital market for its projects and investment activities, as stated in the Oman News Agency report.

OQGN’s initial public offering will be the second major IPO at the Muscat Stock Exchange this year.

In February, Abraj Energy Services Company offered 49% of its share capital in an IPO with the aim to raise up to RO93.97mn. The IPO received an overwhelming response from both retail and institutional investors and was oversubscribed nearly nine times.

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