Muscat – The shares of OQ Gas Network (OQGN), the sole operator of Oman’s gas transportation system, rose nearly 14% during their listing on the Muscat Stock Exchange (MSX) on Tuesday, following the company’s successful raising of RO288mn in Oman’s largest initial public offering (IPO).

OQGN’s listing and trading on the MSX began at 10:00 AM Gulf Standard Time. Shares of the company, which trade under the symbol ‘OQGN’, opened at 159bz on Tuesday, marking a 13.6% increase from its offer price of 140bz. However, OQGN shares later pulled back to 150bz at the close of the market, still registering a 7.1% gain.

The bell-ringing event at the Muscat Stock Exchange was held under the patronage of H E Eng Salim Nasser al Aufi, Minister of Energy and Minerals.

OQGN market value upon listing reached RO606mn, making it the third-largest company listed on the MSX. The listing price was 140bz per share.

A total RO37.12mn worth of OQGN shares were traded on the first day of trading, with a total of 6,244 trades taking place.

The OQGN IPO earlier this month received a robust response from local, regional, and international investors, oversubscribed by nearly 14 times, making it the largest IPO in the sultanate. During the IPO, total demand for OQGN shares amounted to RO4bn.

OQGN’s Selling Shareholders sold 49% of the company’s total share capital through the IPO. Following the completion of the IPO, OQ Group continues to own 51% of OQGN’s share capital.

OQGN’s listing on the MSX provides investors with access to the growth of the company, which holds a natural monopoly over essential gas transportation in Oman. The company manages over 4,030km of gas pipeline network across the sultanate.

According to the IPO prospectus, OQGN intends to adopt a semi-annual dividend distribution policy to pay dividends in cash.

The company expects to pay the first dividend distribution of RO33mn for the first nine months of 2023 around January 2024 and expects to pay the second dividend distribution of RO11mn for the last three months of 2023 around April 2024.

OQGN currently expects to pay a dividend for the fiscal year ending on December 31, 2024, which will be the higher of 90% of the company’s profit for the year or a 5% increase in the aggregate dividends paid for 2023. For 2025, the company expects to pay a dividend, which will be the higher of 90% of the profit for the year ending December 31, 2025, or a 5% increase in the dividends paid for 2024.

OQGN’s IPO was the second major IPO at the Muscat Stock Exchange this year. In February, Abraj Energy Services Company offered 49% of its share capital in an IPO with the aim to raise RO93.97mn. The IPO received an overwhelming response from both retail and institutional investors and was oversubscribed nearly nine times.