In his statement, Eng. Ali bin Mohammed Al Lawati, the Chairman of OQ Basic Industries, articulated that the decision to offer 49 percent of the company's shares for subscription signifies a significant qualitative transformation in the company's trajectory. This move is anticipated to foster further growth and development, aligning with the company's ambitions to supply global markets with its products. Furthermore, it is believed to enhance governance and transparency within the organization.
He further elaborated that this offering will provide an opportunity for local, regional, and international investors to become part of a substantial asset within the Sultanate of Oman, which holds considerable potential for expansion in the international market.
Eng. Khalid bin Khalfan Al Asmi, the CEO of OQ Basic Industries, highlighted that this initiative marks the culmination of the collective efforts of the organization's workforce and is a testament to the trust garnered from customers and partners. He emphasized that the strategic location of the Sultanate of Oman has played a pivotal role in augmenting the competitiveness of the company's business model and elevating the value of its products in the global marketplace.
OQ Basic Industries has opted for a semi-annual dividend policy, with the intention of maintaining a robust dividend policy. This policy aims to allocate all distributable free cash flows back to shareholders, while also considering growth opportunities and credit rating considerations.
The company anticipates distributing dividends of approximately OMR 32.7 million (equivalent to USD 85 million) for the fiscal year 2024. It plans to issue a first dividend of around OMR 24.5 million (approximately USD 63.6 million) within the first nine months of 2024, followed by a second dividend of approximately OMR 8.2 million (equivalent to USD 21.3 million) in the latter part of 2024.
Looking ahead, the company intends to continue its dividend policy for the next two fiscal years ending December 31, 2025, and December 31, 2026, with a commitment to pay dividends that are at least 5 percent higher than the previous year's dividend. Beyond 2027, the company expects to distribute any surplus cash not allocated for general corporate purposes, growth investments, or mergers and acquisitions activities.
