MUSCAT: OQ Exploration and Production SAOG (under transformation) (OQEP), following the successful conclusion of its initial public offering (IPO) bookbuilding and public subscription process, has announced the establishment of its final offer price at Bzs 390 per share.
This final price falls within the premium range of Bzs 370 to Bzs 390, indicative of robust demand from local, regional, and institutional investors, including irrevocable commitments from six prominent anchor investors to purchase a collective 20 percent of the Offering at this final price. The high level of investor participation, coupled with minimal price sensitivity observed in the order book, underscores the strength of the demand. The IPO successfully raised a total of RO 780 million (equivalent to $2.025 billion), inclusive of a pre-discount amount for Omani Individuals, and RO 750 million (equivalent to $1.947 billion), inclusive of a discount for Omani Individuals in the Category II tranche.
Ahmed al Azkawi, the Chief Executive Officer of OQEP, expressed his delight in announcing the favorable outcomes of the subscription process for the IPO. He noted the investors' recognition of OQEP's exceptional track record in value creation, operational excellence, and financial performance, and his anticipation for the forthcoming phase of growth as a publicly listed entity. The widespread support garnered from both institutional and retail investors across both the Category I and Category II offerings serves as a testament to the robustness of OQEP's business model, the quality of its portfolio, and its ambitious growth strategy. This combination offers a compelling value proposition, now endorsed by the global investor community.
The Category I and Category II offerings received oversubscription by 3.4 times and 2.2 times, respectively, with minimal order inflation and significant support and participation from a diverse array of high-quality international, regional, and local investors. Investors in the Category I offering will receive 29.8 percent of their allocated demand, while those in the Category II offering (small retail) will be allocated 100 percent of their demand up to 8,000 shares, followed by 23 percent of their demand above this threshold. Investors in the Category II offering (large retail) will receive 32.6 percent of their allocated demand.
A comprehensive offering of 2.0 billion ordinary shares, constituting 25% of OQEP's issued share capital, has been extended to potential investors. Following the conclusion of the Initial Public Offering (IPO), OQ SAOC (OQ) will retain ownership of the remaining 75% of the Company's share capital.
Upon its listing, OQEP is anticipated to achieve a market capitalization of approximately RO 3.120 billion ($8.1 billion), positioning it as the largest entity on the MSX by market capitalization. This represents 25% of the total market capitalization of the MSX, in addition to the scale of the offering, marking it as the largest IPO in the history of Oman. The IPO is projected to be 2.6 times the size of the previous largest offering by OQ Gas Networks in 2023, setting a new standard on the MSX.
It is expected that OQEP shares will begin trading on the MSX around October 28, 2024, under the symbol “OQEP”, with an International Securities Identification Number (ISIN) of OM0000009759.
