Muscat – Shares of OQ Base Industries (OQBI) fell in their debut on the Muscat Stock Exchange (MSX) on Sunday, following the company’s RO188mn initial public offering (IPO), which was oversubscribed by 2.1 times.

OQBI shares opened at 100bz per share on the first day of trading, nearly 10% lower than the offer price of 111bz. The shares closed 3.6% down at 107bz, compared with the offer price, which was at the top of the range.

More than 62mn OQBI shares changed hands on the debut day, with total turnover reaching RO6.55mn, according to data from the MSX.

The IPO, which offered around 1.69bn ordinary shares, represents 49% of OQBI’s share capital. At the time of listing, the company’s market capitalisation was approximately RO384mn (around $1bn), based on the final offer price of 111bz per share.

The listing was formally launched with a bell-ringing ceremony on the trading floor at the MSX, marking the start of OQBI’s shares trading under the ticker symbol OQBI.

In a press statement, Ali al Lawati, Chairman of OQBI, said, “Today marks an important milestone as OQ Base Industries transitions from a private to a publicly listed company. The IPO is the culmination of the hard work and dedication of our exceptional team, and it reflects the deep strategic value that OQBI holds within Oman and beyond. Our investors’ trust fuels our mission to drive sustainable growth and deliver innovative excellence in our field. As we embark on this new journey, OQ Base Industries remains committed to creating enduring value for all.”

Khalid al Asmi, CEO of OQBI, added, “We are proud to have successfully delivered on this IPO. Its success reflects strong investor confidence in our diversified portfolio and strategically positioned assets. We have shown investors that OQBI exemplifies operational excellence and strategic innovation. Our business model is supported by Oman’s strategic advantages, including a stable industrial environment and a favourable position within a thriving economic framework, as outlined in Oman Vision 2040.”

Haitham al Salmi, CEO of the Muscat Stock Exchange, noted that with the listing of OQBI shares, the market capitalisation of the MSX now stands at approximately RO27.532bn.

He said, “The listing of OQBI marks the second listing by the OQ Group this year and is a valuable addition to the industrial sector. The company is one of the most prominent industrial entities in Oman, playing a significant role in the country’s basic industries. This listing aligns with the ongoing efforts of the Oman Investment Authority to enhance private sector participation, in line with the goals of Oman Vision 2040. It further strengthens the Sultanate’s position as an investment destination, supports economic diversification, and helps empower the Muscat Stock Exchange to attract investment opportunities.”

OQBI plans to distribute RO32.7mn in dividends for the fiscal year 2024. Additionally, the company intends to distribute dividends twice each fiscal year following the IPO, reflecting its expectation of strong cash flow and long-term earnings potential.