(Bloomberg) — Oman’s state energy company is seeking to raise as much as $490 million from the initial public offering of its methanol and liquefied petroleum gas unit, the latest in a flurry of deals from the region.
OQ SAOC will offer a 49% stake in OQ Base Industries SAOG at 106 baisas ($0.28) to 111 baisas per share, according to a statement Monday. At the top end of that price range, the firm would be valued at $1 billion.
Falcon Investments LLC, Gulf Investment Corp., Saudi Omani Investment Co. and Social Protection Fund, have committed to subscribe for about 30% of the offer as anchor investors.
The subscription period will run from Nov. 24 to Dec. 1, and shares are expected to begin trading on the Muscat Stock Exchange around Dec. 15.
The sale comes weeks after OQ raised a record $2 billion from an IPO of its exploration and production unit, and adds to the wave of listings in the Middle East that have raised about $10 billion so far this year.
The sultanate is pushing ahead with an ambitious privatization drive. Around 30 assets are in the pipeline, including logistics company Asyad Group and Oman Electricity Transmission Co.
To attract investors, OQBI plans to pay about $85 million in dividends for 2024. For 2025 and 2026, the payout will be at least 5% higher than the previous year.
The firm reported revenue of $510 million and an adjusted EBITDA margin of 43.1% for the year ended December 2023.
Morgan Stanley, Bank Dhofar and Bank Muscat have been named joint global coordinators, while Kamco Investment Co. and BSF Capital have been appointed as joint bookrunners.
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