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OQEP shares drop 8.2% on market debut after Oman’s biggest IPO

28 Oct 2024 By GULAM ALI KHAN

Muscat – The shares of OQ Exploration and Production Company (OQEP) fell during their trading debut on the Muscat Stock Exchange (MSX) on Monday following the company’s record RO780mn initial public offering (IPO), which was oversubscribed 2.4 times.

OQEP shares opened at 375bz per share at the time of listing on Monday, which is 3.8% lower than the offer price of 390bz. The shares closed 8.2% lower at 358bz against the offer price of 390bz, which was at the top of the offered price range.

Over 272.58mn OQEP shares exchanged hands on Monday, with a total turnover of RO101.547mn, according to data from the MSX website.

The Muscat Stock Exchange celebrated the listing of OQEP shares, marking the commencement of public trading following the IPO of 25% of the company’s share capital. With a market capitalisation of more than RO3bn, OQEP has become the largest company listed on the MSX and the first exploration and production company to achieve this.

The event began with the ceremonial ringing of the bell to signal the start of trading, under the auspices of H E Sultan bin Salim al Habsi, Minister of Finance.

OQEP’s IPO was the largest of its kind in Oman and one of the largest in the region this year, with two billion shares representing 25% of the company’s capital offered to the public.

In a press statement, Ahmed Said al Azkawi, CEO of OQEP, emphasised that the listing marks an important phase in the company’s journey of growth and evolution since its founding in 2009 as a government investment arm for exploration and production. He affirmed OQEP’s commitment to maintaining the highest standards of governance and transparency in line with regulatory requirements set by the Financial Services Authority and the Muscat Stock Exchange.

Ashraf Hamed al Mamari, Group CEO of OQ, said, “Today marks a significant milestone as OQEP transitions from a closed joint-stock company to a public joint-stock company. OQEP is now the third OQ Group entity to go public, following Abraj Energy Services and OQ Gas Networks. This supports economic diversification and contributes to achieving the goals of Oman Vision 2040. This step represents a major advancement for OQEP, paving the way for greater investment opportunities and the expansion of operations both in Oman and internationally, while reinforcing our commitment to governance and transparency.”

Haitham Salim Al Salmi, CEO of the Muscat Stock Exchange, noted that OQEP accounts for 11.3% of the total market value of listed companies on the MSX, and such a significant company will help elevate the MSX to emerging market status, boosting investor confidence in Oman. “Investors now have a wider range of sectors to invest in, and the listing of large companies contributes to the growth of the exchange’s market value. This step also supports better representation of economic sectors and the overall development of Oman’s economy.”

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