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Oman’s OQBI prices 49% IPO, seeks USD 490 in sales: Methanol, ammonia, and liquified gas producer OQ Base Industries (OQBI) — a subsidiary of the state-owned OQ energy group — has priced its IPO at a range of between 106 bps (USD 0.28) and 111 bps (USD 0.29) per share for its offering of a 49% stake – around 1.7 bn shares – on the Muscat Stock Exchange, according to public disclosure (pdf). The company will reportedly seek to raise around USD 490 mn from the IPO, Bloomberg reports.
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The details: 30% of the shares will be available for institutional investors at the 106-111 bps per share range (category I subscriptions), whereas 40% of the shares will be up for grabs for Omani retail investors at 111 bps (category II subscriptions). The remaining shares will be allocated proportionally based on demand, the disclosure stated. The subscription period for the offering runs 24 November through 1 December, with trading on the Muscat Stock Exchange to start around 15 December.
Who’s biting so far? Gulf Investment Corp, US-based Falcon Investments, Saudi Omani Investment Company, and Oman’s Social Protection Fund have reportedly committed to pick up about 30% of the offer as anchor investors.
REFRESHER- Not a first for OQ: This IPO follows OQ’s recent IPO of its exploration and production arm, which raised around USD 2 bn, making it Oman’s largest-ever IPO despite falling on the debut.
ADVISORS- Bank Dhofar, Bank Muscat, and Morgan Stanley are acting as issue managers and joint global coordinators, and BSF Capital and Kamco Investment Co. are acting as joint bookrunners.
