Muscat – OQ Base Industries (OQBI), Oman’s sole integrated producer of methanol, ammonia, and LPG products, has successfully completed its initial public offering (IPO), raising RO188mn after setting the final offer price at 111bz per share, the upper end of its price range.

The offering, which attracted strong interest from local, regional, and international investors, was oversubscribed by 2.1 times, with total demand reaching RO387mn. This included binding commitments from four prominent anchor investors, who collectively subscribed to 30% of the offering.

The IPO saw robust participation across both institutional and retail investor categories. Demand from institutional investors in Category I amounted to RO236mn, while retail investors in Category II placed orders for RO95mn. The Category I offer was oversubscribed by 4.2 times, while the Category II offer was oversubscribed by 1.3 times, according to a statement issued by OQBI.

Anchor investors category raised over RO56mn. Anchor investors included notable regional entities such as Falcon Investments, a subsidiary of the Qatar Investment Authority (QIA), the Kuwait-based Gulf Investment Corporation (GIC), the Saudi Omani Investment Company (SOIC), and the Omani Social Protection Fund.

OQBI’s Chief Executive Officer, Khalid Khalfan al Asmi, expressed his satisfaction with the outcome. He said, “We are pleased that investors have acknowledged the strength of our business and our clear strategy for growth. This strong endorsement reinforces us as we move into the next phase of our journey as a publicly listed company on the MSX.”

Ali al Lawati, Chairman at OQBI, said, “The successful completion of the bookbuilding process and the strong demand emphasise the confidence investors have in OQBI’s strategic vision and growth potential. This milestone marks a significant step forward in OQBI’s mission to drive sustainable growth in an evolving market. We are excited to embark on our journey as a publicly listed company, further committed to delivering excellence and innovation in the industries we serve.”

The OQBI IPO received support from 35,700 individual investors for the Category II offering.

The Financial Services Authority (FSA) has approved the allocation ratios for the shares. Oman-based investors in the Category I offering will receive 19.95% of their demand, while international investors will receive a discretionary allocation. Investors in the Category II offering (small retail investors) will receive 100% of their demand up to 30,000 shares and then 29.269% of their demand above this level. Investors in Category II offering (large retail) will receive 72.817% of their demand.

The OQBI IPO offered a total of 1.69bn ordinary shares, representing 49% of OQBI’s issued share capital. The remaining 51% of shares will continue to be held by the OQ Group. At the time of listing, OQBI is expected to have a market capitalisation of RO384mn (equivalent to $1bn).

Shares of OQBI are expected to commence trading on the Muscat Securities Market (MSX) on or around December 15, 2024.