OQ Base Industries IPO to raise over RO 180 million

The Financial Services Authority (FSA) has approved the prospectus for the initial public offering (IPO) of OQ Base Industries, a subsidiary of the Oman Investment Authority. As part of its transformation into a public joint stock company, the corporation will offer approximately 1.7 billion shares, representing 49% of its capital, with an expected value exceeding RO 180 million. The IPO is aligned with Oman Vision 2040’s goals of attracting investments and privatising government assets, providing an opportunity for investors to participate in one of Oman’s leading producers of methanol, ammonia, and liquefied petroleum gas (LPG) products.
According to the prospectus, shares will be offered across three categories. The first category, comprising institutional investors, will account for 30% of the total offering. Subscriptions for this category will be open from November 24 to December 1, 2024, with a price range of 106–111 baisas per share. Institutional investors will be required to subscribe to a minimum of 200,000 shares, with no upper limit specified. The second category, targeting individual investors, will represent 40% of the total offering. Subscription for individuals will take place from November 24 to November 28, 2024, at a fixed price of 111 baisas per share. The minimum subscription for this group is 1,000 shares, with an upper limit of 90,000 shares. The third category, allocated to major investors, will account for 30% of the offering. Major investors must subscribe to at least 90,100 shares in multiples of 100, with no upper limit.
The IPO reflects the Oman Investment Authority’s strategy of expanding the shareholder base and boosting the local stock market. Additionally, it is intended to strengthen OQ Base Industries’ position in domestic and international markets. The prospectus outlines the company’s current opportunities and challenges, details of its contracts, and its profit distribution plans. It also provides critical information to help investors make informed decisions, ensuring transparency and compliance with regulatory standards.
Subscriptions for the IPO will open on November 24, marking a significant milestone in Oman’s financial and industrial sectors. With the offering expected to raise over RO 180 million, it represents a key step in the government’s efforts to diversify the economy and attract both national and foreign investments.

Oman Observer