OQ Exploration and Production (OQEP), Oman's largest pure-play oil and gas exploration company, is set to launch an initial public offering (IPO) and list its ordinary shares on the Muscat Stock Exchange.

 

The company plans to sell up to 25 per cent of its total issued share capital, with the company and the Selling Shareholder, OQ, having the right to amend the size at any time, said a statement.

 

A minimum 75 per cent shareholding will remain with OQ after the offering. HSBC, Natixis, OIB, and Sohar International have been appointed as joint global coordinators, with Sohar International as the issue manager.

 

The offering provides investors exposure to OQEP, a top three oil and gas producer and one of the largest holders of reserves in Oman.

 

OQEP has experienced significant growth, expanding its average daily production nearly 14 times since its inception in 2009.

 

OQEP benefits from Oman’s fundamental advantages, including (i) its strategic location in a prolific hydrocarbon province with direct access to global shipping routes and logistics hubs; (ii) its well-developed oil and gas sector; (iii) a stable and highly prospective oil and gas operating environment which has attracted many international investors; (iv) the Government of Oman’s encouragement of investment in gas-intensive industries to support economic diversification and hydrocarbon value optimisation; and (v) an established and competitive regulatory and fiscal framework for the hydrocarbon sector.

 

Ashraf Hamed Al Mamari, Group CEO of OQ, said: “Today marks a significant milestone in our journey towards enhancing the value of OQ’s portfolio through strategic divestments. The intention to float OQ Exploration and Production reflects our commitment to unlocking new opportunities for growth, both for the company and for the Sultanate of Oman. Together with our ultimate shareholders at the Oman Investment Authority, we continue to broaden the reach of OQ companies, offering an attractive and robust investment case to the global market. OQ Exploration and Production, with its leading position in maximising Oman's natural resources, underscores our focus on sustainable development and local value creation. By empowering local communities and supporting small and medium-sized enterprises, we not only maximise local value but also contribute to the long-term economic stability of Oman.”

 

Ahmed Al-Azkawi, OQEP Chief Executive Officer, added:  “We are pleased to announce OQEP’s intention to float on MSX. Since our inception in 2009, we have worked tirelessly to pursue growth opportunities and strengthen our market position. This milestone represents the success of all those years of hard work. Our enterprise core values of operational excellence and sustainability have allowed us to build the company we are now taking public. OQEP is a reliable partner for 13 reputable international companies owing to our significant growth trajectory, robust portfolio of assets, and record-breaking production of nearly 14 times higher since inception."

 

He added: "Our strategic goals, aligned with Oman’s Vision 2040, focus on monetising the country’s hydrocarbon resources while supporting the energy transition. Additionally, stimulating the local economy is central to our sustainability initiatives, which includes developing local talent and supporting our CSI projects to increase our contributions to In-Country Value. We continue to build on our success and invite investors to be part of this unique opportunity and successful journey.”

 

OTHER KEY DETAILS OF THE OFFERING

* All the shares being sold by the Selling Shareholder (OQ) are existing ordinary shares and the company will not receive any proceeds from the sale of the shares in the offering, all of which will be paid to the selling shareholder. The offering expenses will be paid by the selling shareholder.

 

* The Offering will be offered in two tranches to eligible investors in Oman and qualified institutional and other investors in a number of countries (the "Category I Investors") and retail investors in Oman ("Category II Investors"). It will be conducted in the manner approved by the FSA and will be carried out concurrently.

• Category I (Institutional Tranche) Offer represents 60% of the total Offering and will be made to eligible investors in Oman and qualified institutional and other investors in a number of countries, which is expected to be allocated on a pro-rata basis relative to an investor’s order size. 

• Category II (Retail Tranche) Offer represents 40% of the total Offering for retail investors in Oman. Retail investors in the Category II Offer will be assigned as either a large retail investor or a small retail investor depending on the size of their subscription amount. A portion of the Category II Offer will be made available to large retail investors and the remainder of the Category II Offer will be 

made available to small retail investors.

• If the aggregate demand in Category II is less than 40% of the Offer, then after full allocation to the Category II investors, the balance of the shares shall be made available to Category I investors, if there is oversubscription in Category I.-TradeArabia News Service