Muscat – Oman India Fertiliser Company (OMIFCO), the integrated ammonia and urea producer jointly owned by Omani and Indian shareholders, is seeking to raise RO260.88mn (approximately US$678mn) through an initial public offering (IPO) that opens for subscription on Tuesday.

According to the IPO prospectus, OMIFCO’s existing shareholders – OQ, Indian Farmers Fertiliser Cooperative Limited (IFFCO) and Krishak Bharati Cooperative Limited (KRIBHCO) – will offer a combined 1.672bn shares, representing 25% of the company’s issued share capital. The total value of the offering amounts to RO260.88mn.

The offer price range has been set between 146bz and 156bz per share, implying an equity valuation of up to approximately RO1.04bn (US$2.7bn) for the company.

The Financial Services Authority (FSA) confirmed that it has approved the prospectus for the OMIFCO IPO, clearing the way for the stake sale and the company’s subsequent listing on the Muscat Stock Exchange (MSX).

‘This move is set to deepen Oman’s capital markets, broaden the investor base, and create new investment opportunities for both individuals and institutions,’ the FSA said in a statement.

The offering has been structured into two investor categories.

The first category comprises 1,003,406,250 shares allocated to institutional investors, including local, regional and international investors, representing 60% of the total offering. The subscription period for this tranche will run from June 16 to June 25, 2026, with investors able to subscribe within the price range of 146bz to 156bz per share.

Within the institutional tranche, up to 30% of the total offering, equivalent to 501,703,125 shares, has been allocated to non-local investors, while at least 30%, also equivalent to 501,703,125 shares, has been reserved for local investors.

The second category comprises 668,937,500 shares allocated to individual investors, representing 40% of the total offering. This tranche will be allocated on a pro-rata basis and is equally divided between high-net-worth investors and retail investors.

Subscriptions for the retail tranche will also open on June 16 and close on June 25. Investors in this category will subscribe at a fixed price of 156bz per share.

OMIFCO shares are expected to begin trading on the Muscat Stock Exchange on July 8, 2026.

According to the prospectus, any shares remaining unsubscribed in the second category will be transferred to the first category, subject to additional demand from institutional investors. The prospectus also authorises the FSA to determine an appropriate allocation mechanism for retail investors in the event of oversubscription.

Dividend policy

Following its listing, OMIFCO intends to adopt a semi-annual cash dividend policy, with distributions planned in April and September each year, subject to the necessary corporate approvals.

For the 2026 financial year, the company expects to distribute a base dividend of approximately RO71.2mn (US$185mn), payable in two equal instalments in September 2026 and April 2027. In addition, the company intends to pay a special dividend of RO9.6mn alongside the first dividend distribution.

For the 2027 and 2028 financial years, OMIFCO expects dividends to be the higher of 90% of net profit or an annual dividend amount reflecting a minimum compounded growth rate of 3% from the 2026 dividend base.

Strategic fertiliser producer

The OMIFCO offering is regarded as one of the most significant IPOs in Oman’s capital market in recent years, reflecting the company’s strategic position within the fertiliser industry and its contribution to the industrial sector, food security and the national economy.

The IPO provides investors with an opportunity to acquire a stake in a world-scale producer of ammonia and urea that plays an important role in supporting global food security.

OMIFCO operates the largest fertiliser complex in Oman and ranks among the top five fertiliser producers in the GCC. The company runs two ammonia trains and two urea trains at its Sur facility, with an annual nameplate production capacity of approximately 1.15mn tonnes of ammonia and 1.65mn tonnes of urea.

The company also benefits from long-term gas supply agreements, established offtake arrangements and export-oriented infrastructure, including a dedicated deep-water jetty in Sur, enabling efficient and uninterrupted access to international markets.