Muscat,
The Financial Services Authority (FSA) has approved the prospectus of OQ Exploration and Production Company (OQEP), which is undergoing transition into a public joint stock company.
Towards this end, the company offers not less than two billion shares, accounting for 25 percent of the company’s capital, through public subscription. Given the size and market value of the company, the step constitutes the largest offering in the history of the Omani capital market
OQ Exploration and Production Company is an affiliate of Oman Investment Authority (OIA). The offering of shares for subscription embodies OIA’s drive to divest from some government assets. It constitutes a step forward in meeting the objectives of Oman Vision 2040, which is aimed at attracting national and foreign investments.
The offering also leads to the diversification and expansion of the shareholder base.
The offering will provide investors with an opportunity to invest in a major company specialized in oil and gas exploration and production in the Sultanate of Oman.
The offering will extend for two weeks starting from 30 September 2024. Subscription for the first segment will continue until 10 October 2024, while subscription for the second segment (individuals) will close on 9 October.
The prospectus shows that the number of shares offered for subscription is divided into three main categories. The first is the institutional category, the second is the individuals category and the third is the main investors category.
The first category may determine its own price range by building an order book (370 to 390 baisas per share).
The share price for Omani individuals will be calculated at a rate of 351 baisas per share by calculating the highest price of 390 baisas minus the 10 percent discount. It aims to encourage Omanis to participate in this type of issuance and enable them to utilize the available investment opportunities. For non-Omanis, the share price will be 390 baisas.
The prospectus indicates that the share of the first category (institutions) amounts to 40 percent of the total offering. It is divided equally between local institutions, as well as regional and international institutions. The minimum subscription for this category will be 100,000 shares.
The individuals’ category will be allocated a 40 percent of the total offering. The minimum subscription for this category will be 500 shares and the maximum will be 28,500 shares.
Twenty percent of the offering volume has been allocated to the category of major investors. This category represents qualified investors from Oman and abroad, according to the prospectus.