Oman’s economic landscape has been reshaped with the historic achievement of OQ Gas Networks, the vital pipeline subsidiary of state-owned OQ oil company, raising a monumental 288 million Omani rials (equivalent to $750 million) in its recent initial public offering (IPO). This achievement, marking Oman’s most substantial financial milestone, witnessed extraordinary interest from a diverse pool of investors, both domestic and international. The demand soared to an astounding 14 times the supply, amounting to over 4 billion rials ($10 billion), eventually setting the share price at 140 baizas.
Post-IPO, OQ retains its majority stake at 51 percent, allowing OQ Gas Networks to debut on the Muscat Stock Exchange (MSX) under the symbol “OQGN” from October 24. With a market capitalization of 606 million rials, it will secure its position as the third-largest MSX company, transforming the economic landscape of Oman significantly.
OQ Gas Networks holds a critical role as Oman’s sole provider of gas transportation infrastructure, ensuring an uninterrupted supply chain, as evidenced by its flawless operations in 2022. The extensive network spans 4,031 kilometers, enabling the transportation of 39.4 billion cubic meters of gas to around 130 consumers through six producers. This accomplishment is part of the government’s broader divestment initiative, led by the Oman Investment Authority, affirming Oman’s robust economic growth amidst global economic challenges.
Oman’s extraordinary IPO success reflects the region’s resilience, with IPO activities in the Middle East and North Africa growing by 44 percent in the second quarter of this year, despite a global slowdown in equity markets. OQ Gas Networks’ achievement not only makes headlines but also sets a new standard for financial excellence in the region.