Muscat – The institutional tranche of OQ Base Industries’ (OQBI) initial public offering (IPO), which represents 30% of the total shares on offer, was fully subscribed on the first day of the subscription period, which began on Sunday. Demand came in at the upper end of the price range, with shares priced at 111bz each, reflecting strong institutional interest in the offering.

The subscription period for retail investors will close on November 28, while the institutional tranche remains open until December 1.

In a statement, Dr Lamya Harib al Kharusi, IPO Execution Manager at OQ Group, highlighted the strong demand, which underscores the attractiveness of OQBI’s value proposition. She also noted that the response reflects institutional investors’ confidence in the company’s future prospects. “With the institutional tranche fully covered on the first day, and anchor investors committing to 30% of the offered shares, the IPO has already achieved a 60% coverage rate,” Dr Lamya said.

The share allocation is designed to ensure broad participation across investor categories. Thirty per cent of the shares are allocated to institutional investors (Category 1), 40% are designated for retail investors – split evenly between small and large retail investors – and 30% are reserved for anchor investors, who have already made commitments.

Eng Khalid bin Khalfan al Asmi, CEO of OQBI, described the IPO as a strategic step toward fostering new partnerships and aligning the company’s growth with Oman Vision 2040. “This IPO unlocks new strategic opportunities to align the company’s growth and expansion with the aspirations of Oman Vision 2040, while creating avenues for new partners to join our journey,” he said.

Asmi added that the IPO’s share price will remain unified across all investor categories, set within a price range of 106bz to 111bz per share, determined through a transparent book-building process. “This carefully planned approach ensures transparency and fairness for all participants, whether individuals or institutions,” he said.

The listing of OQBI shares is expected to enhance liquidity on the Muscat Stock Exchange (MSX), contributing to the strengthening of Omani capital markets and boosting their regional and global presence.

Expansion plans

On OQBI’s growth strategy, Asmi said, “We see significant opportunities for near- and mid-term expansion of our methanol plant, alongside long-term projects for blue and green ammonia. This integrated vision keeps OQBI on track to achieve its long-term goals while meeting the growing global demand for clean energy solutions.”

He further said that OQBI is building a solid industrial foundation to meet increasing global demand for its portfolio of methanol, ammonia, and LPG. “Our clear roadmap includes expansion plans to increase methanol production capacity by 50%, positioning us as pioneers in the clean fuel sector to meet future market demand.”

“We are fully equipped to capitalise on the shift towards clean energy sources through methanol and ammonia solutions. Our stable cash flow and profit margins, even amidst market fluctuations, reflect the advantages of investing in Oman’s stable, forward-looking economic environment, perfectly aligned with Oman Vision 2040,” he concluded.