OQ Gas Networks (OQGN) has revealed its intention to launch an initial public offering (IPO) and become listed on the Muscat Stock Exchange (MSX), making a significant announcement for Oman’s energy sector.
The IPO subscription phase is scheduled to commence in September after obtaining the requisite approvals from the Capital Market Authority (CMA). OQGN shares are expected to be officially listed on the MSX in October 2023, a key milestone announced by OQGN during an event.
The selling shareholders anticipate selling up to 49% of OQGN’s total issued share capital through the IPO. Post-offering, OQ will maintain a minimum shareholding of 51%, as confirmed in a press statement.
OQGN, as the holder of a natural monopoly in Oman’s essential gas transportation sector, offers investors an opportunity to partake in the company’s growth.
The IPO will be accessible to eligible investors in Oman, qualified institutional investors, and others in various countries (Category I), as well as retail investors in Oman (Category II). OQGN has outlined the IPO structure, including two tranches: Category I, constituting 70% of the total offering, and Category II, earmarking 30% of the total offering for retail investors.
Regarding dividend policy, OQGN intends to implement a semi-annual dividend distribution strategy, providing dividends in cash following the offering. The company anticipates the first dividend distribution of RO33 million for the first nine months of 2023 around January 2024. Additionally, the second dividend distribution of RO11 million for the last three months of 2023 is expected around April 2024.
For the fiscal year concluding on December 31, 2024, OQGN foresees paying a dividend, representing the higher of 90% of the company’s profit for the year or a 5% increase in the aggregate dividends paid for 2023. Similarly, for 2025, the company anticipates paying a dividend, reflecting the higher of 90% of the profit for the year ending December 31, 2025, or a 5% increase in dividends compared to 2024.
Mansoor al Abdali, Managing Director of OQGN, affirmed the company’s dedication to delivering critical infrastructure supporting Oman’s industries and economy. He expressed pride in conducting the listing on the Muscat Stock Exchange and reaffirmed OQGN’s commitment to reliability, efficiency, safety, and sustainability.
Talal al Awfi, OQ Group CEO and OQGN Chairman emphasized that the IPO of OQGN aligns with Oman’s Vision 2040, a comprehensive national development plan aiming to foster prosperity, competitiveness, and sustainability. He highlighted the opportunity for both Omani and international investors to engage in Oman’s ambitious economic diversification.
Bank Muscat, BofA Securities, and EFG-Hermes UAE Limited have been appointed as joint global coordinators for the OQGN IPO, with Bank Muscat serving as the issue manager.