Muscat: The Financial Services Authority (FSA) has announced the approval of the prospectus for OQ Basic Industries (OQBI), which is set to undergo a conversion into a public joint stock company. This transformation is facilitated by the issuance of approximately 1.7 billion shares for public subscription, representing 49 percent of the company's capital. The offering size is anticipated to exceed OMR180 million.
The prospectus details that shares designated for the individual category are allocated 40 percent of the total offering at a price of 111 baisas per share.
Furthermore, the prospectus outlines that the subscription period will commence on November 24, 2024, for five days for the individual category and eight days for the institution category. Subscriptions for OQBI shares in these categories will range from 106 baisas to 111 baisas.
OQ Basic Industries is a subsidiary of the OQ Group, affiliated with the Oman Investment Authority (OIA). This offering of shares for subscription is part of the OIA's divestment strategy and aligns with the objectives of Oman Vision 2040, which aims to attract both national and international investments.
This offering also serves as a strategic move towards diversification and expansion of the shareholder base. It presents an opportunity for investors to invest in one of the leading companies in Oman, specializing in the production of methanol, ammonia, and liquefied petroleum gas (LPG) products, including propane, butane, condensates, and LPG (cooking gas).
The prospectus specifies that the number of shares available for subscription is divided into three primary categories: institutions (first category), individuals (second category), and major investors (third category). Subscriptions for OQBI shares in the first category will begin on Sunday, November 24, 2024, and will continue until Sunday, December 1, 2024.
The subscription price for the first category will be determined through a book building process, with a price band ranging from 106 baisas to 111 baisas per share. Subscriptions for the second category, which includes individuals, will be available from Sunday, November 24, 2024, to Thursday, November 28, 2024, for a duration of five days, with a subscription price set at 111 baisas per share.
The prospectus further details that the first category, representing institutions, will hold 30 percent of the total offering, allocated equally among local, regional, and international institutions. The minimum subscription for this category is set at 200,000 shares, with no specified maximum subscription limit. The second category, designated for individuals, will receive 40 percent of the total offering.
The minimum subscription limit for major investors is set at 90,100 shares in multiples of 100 shares, with no upper limit specified. The small investors category, referred to as the third category in the prospectus, will have a minimum subscription of 1,000 shares and a maximum subscription limit of 90,000 shares.
Approximately 30 percent of the offering was allocated to the category of major investors, with a total allocation of 508,545,156 shares, valued at over OMR56.45 million. This allocation included both eligible investors from within the Sultanate of Oman, as detailed in the prospectus.
The Financial Services Authority (FSA) underscores the importance of the prospectus as the primary source of information regarding OQBI, a security issued by the issue manager in compliance with legal requirements. This document is designed to assist investors in making informed investment decisions, thereby steering them away from speculative or unreliable sources of information. Therefore, a thorough review of the prospectus is essential for acquiring a comprehensive understanding of the company's performance, historical financial position, and future prospects.
Furthermore, the prospectus delineates the current opportunities and challenges facing the company and its sector. It also provides insights into the company's contracts, their durations, and the prospects for dividend distribution in the near future. Additionally, the document outlines the company's future policies regarding dividend distribution.
The FSA encourages the public to engage with the publicity surrounding the prospectus, organized by the issuer of the security, OQBI, and the issue manager. This engagement is aimed at facilitating access to the detailed information contained within the prospectus, which is crucial for making well-informed investment decisions.
