Muscat – Oman’s stock exchange regulator, the Capital Market Authority (CMA), is reviewing the prospectus for the long-awaited initial public offering (IPO) of OQ Gas Network Company (OQGN), the sole operator of Oman’s gas transmission system.
According to a report by Oman News Agency, the size of OQGN’s IPO is expected to be around RO 212 million and the company will offer 49% of the share capital of the IPO. This will be the largest IPO in Oman’s capital market history.
OQGN, as the sole owner and operator of the natural gas transmission network, has a natural monopoly over the critical gas transmission infrastructure in Oman.
The company manages over 4,030 km of gas pipeline network throughout the Sultanate. This extensive network supplies gas to power plants, water desalination plants, cement and aluminum plants, aluminum smelters, fertilizer and methanol plants, refineries, steel and cement plants, oil companies and more.
Over the past 10 years, OQGN has achieved a gas availability rate of over 99.99%.
By offering shares in the IPO, OQGN aims to take advantage of the financing benefits that the capital market offers for its projects and investment activities, according to the Oman News Agency report.
OQGN’s IPO will be the second major IPO on the Muscat Stock Exchange this year.
In February, Abraj Energy Services Company offered 49% of its share capital in an IPO, aiming to raise up to RO93.97 million. The IPO received an overwhelming response from both private and institutional investors and was almost nine times oversubscribed.
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