Muscat: The OQ Exploration and Production (OQEP) Company has received a final commitment from its primary investors, with a subscription amount potentially reaching OMR156 million. This commitment falls within the upper limit of a price range set at 390 baisas per share.
Deputy Head of Public Subscriptions Implementation at OQ Group, Azzan Mohammed Al Abdullatif, disclosed that 20 percent of the offering volume allocated to OQ Exploration and Production Company was reserved for major investors, predominantly from Omani institutions. These institutions, known for their high local reputation, include both governmental and private investment funds, as well as entities from the banking sector.
Al Abdullatif further noted that these major investors are all local entities, with the Protection Fund securing a significant share of the offering, accounting for over 8 percent.
In an interview with the Oman News Agency (ONA), Al Abdullatif highlighted that the segment of primary investors in this offering represents a smaller percentage compared to previous subscriptions as a proportion of the total offering volume. However, he explained that the volume of this segment has been increased due to it being the primary target of such subscriptions.
Al Abdullatif also mentioned that more than 40 percent of the shares are available for subscription, with a total value of RO 312 million. He expressed optimism regarding the demand for these shares, anticipating a strong response from investors within the Sultanate of Oman. Such a development is expected to enhance the circulation of capital within the country and stimulate the activity of the Muscat Stock Exchange.
He emphasized that the offering structure and division were meticulously designed to allocate 40 percent to the Individual Category, which is further divided into two equal tranches: The “Small Individual Investors Tranche/portion” (to accommodate requests starting from 500 shares up to 28,500 shares) and the “Large Individual Investors Tranche” (to cover all requests from individual investors, starting from 28,600 shares, without specifying a maximum subscription ceiling).
Al Abdullatif stated that the restructuring of the offering was aimed at providing equitable opportunities for all segments of society, benefiting from previous subscriptions, and offering citizens an advantage. He also mentioned that this initiative encourages citizens to benefit from a 10 percent discount on the final price, equivalent to 351 baisas.
