Oman’s OQ Gas Networks (OQGN), the pipeline division of the state-owned OQ, is poised to set the price for its initial public offering (IPO) at the highest point of the range, based on information obtained by Reuters.
Investors submitting orders below 140 Omani baisas (equivalent to $0.36) per share risk not participating in the offering, as conveyed in a message to investors by one of the banks involved in the transaction.
Strong Demand for OQ Gas Networks IPO Expected to Close Soon
At this level, demand has exceeded supply multiple times, and the books are set to close on Monday, according to Gulf Business.
Three anchor investors, including the Saudi Omani Investment Company (a wholly-owned subsidiary of Saudi Arabia’s Public Investment Fund), Falcon Investments (a subsidiary of the Qatar Investment Authority), and Fluxys International, have already committed to acquiring 10 percent each of the offering at the upper end of the price range, as disclosed by the company last month.
OQ is divesting a 49 percent stake, equivalent to 2.12 billion shares, in its gas pipelines business, with a per-share price ranging from 131 to 140 Omani bases.
If OQGN goes for the top end of the range, it would mark the largest IPO in Oman’s history, surpassing the $748M IPO of Oman Telecommunications in 2005.
Bank of America, Bank Muscat, and EFG Hermes are serving as joint global coordinators for the transaction, and shares are expected to make their debut on the Muscat stock exchange on or around October 24.
