Meed | OQ Group announces IPO of downstream products unit

OQ Group announces IPO of downstream products unit

5 November 2024

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Omani state energy conglomerate OQ Group has announced an initial public offering (IPO) of its subsidiary OQ Base Industries (OQBI), a producer of methanol, ammonia and liquefied petroleum gas (LPG).

Up to 49% of shares of OQBI are to be floated in the planned IPO on the Muscat Stock Exchange (MSX).

OQ Group said it owns 100% of the capital of OQBI directly and through its subsidiaries, Takamul Investment Company and OQ Salalah Industries Company.

This will be the fourth IPO of an OQ Group subsidiary. The state energy enterprise completed the stock listing of two businesses – onshore oil and gas drilling company Abraj Energy Services and midstream firm OQ Gas Networks – in March and October 2023, respectively.

As recently as 28 October, shares of OQ Exploration & Production started trading on MSX following an IPO from which the parent entity earned total proceeds of about $2bn by floating 49% of shares – making it the largest stock listing exercise in Oman to date.

OQ Group said Bank Dhofar and Bank Muscat, along with New York-based Morgan Stanley, have been appointed as joint global coordinators, with the local banks also acting as issue managers. In addition, Kamco Investment Company and BSF Capital have been appointed as joint bookrunners.

The subscription period for institutional and retail investors is set to begin later in November, with trading of shares on MSX expected to start in December.

OQ Base Industries

OQBI is the only producer of methanol, ammonia and LPG products – such as propane, butane, condensate and cooking gas – in the sultanate.

Based in the Salalah Free Zone in southern Oman, the company is active throughout the natural gas value chain, operating three plants with a combined nameplate production capacity of 1.8 million tonnes a year.

OQBI’s revenues last year reached $510m, while its adjusted earnings before interest, taxes, depreciation and amortisation margin was 43.1%.

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Indrajit Sen