Wednesday 04 / December / 2024
Muscat: OQ Base Industries (SFZ) SAOG (under transformation), Oman’s only integrated producer of methanol, ammonia, and LPG products, announced that it has successfully completed bookbuilding and has priced its IPO shares at the final Offer Price of 111 baisas per share.
The final Offer Price is set at the top end of the price range of 106 baisas to 111 baisas , reflecting strong demand from local, regional and institutional investors, including binding commitments from four anchor investors to subscribe for an aggregate of 30% of the Offering at the final Offer Price, high quality investor participation and limited price sensitivity in the order book.
The anchor investors include Falcon Investments LLC, a subsidiary of Qatar Investment Authority (QIA), the Kuwait-based Gulf Investment Corporation (GIC), the Saudi Omani Investment Company, a wholly owned entity of Saudi Arabia’s Public Investment Fund, and the Omani Social Protection Fund. The IPO raised a total of OMR188 million.
Aggregate demand for the IPO was OMR387 million with OMR236 million from institutional investors under the Category I offer OMR95 million from retail investors under the Category II offer. Anchors category raised over OMR56 million.
Khalid Khalfan Al Asmi, Chief Executive Officer at OQBI, said: “We are pleased that investors have acknowledged the strength of our business and our clear strategy for growth. This strong endorsement both in Oman and internationally reinforces us in the next stage of our journey, as a listed company on the MSX.”
Ali Al Lawati, Chairman at OQBI, added: “The successful completion of the bookbuilding process and the strong demand emphasise the confidence investors have in OQBI’s strategic vision and growth potential. This milestone marks a significant step forward in OQBI’s mission to drive sustainable growth in an evolving market. We are excited to embark on our journey as a publicly listed company, further committed to delivering excellence and innovation in the industries we serve.”
The Company’s Category I and Category II offerings were subscribed 4.2x and 1.3x, respectively, with limited order inflation and significant support and participation by a wide range of high quality local, regional and international, investors orders.
Oman-based Investors in the Category I offering will be allocated 19.95% of their demand, with a discretionary allocation for international investors. Investors in the Category II offering (small retail) will be allocated 100% of their demand up to 30,000 shares and then 29.269% of their demand above this level. Investors in Category II offering (large retail) will be allocated 72.817% of their demand.
A total of 1.69 billion ordinary shares, representing 49% of OQBI’s issued share capital, were offeredto investors.
OQ (OQ) will retain the remaining 51% of the Company’s share capital immediatelyfollowing completion of the IPO.
Upon listing, OQBI is expected to have a market capitalisation of OMR384 million.
OQBI shares are expected to commence trading on the MSX on or around 15 December 2024 under the symbol “OQBI” and ISIN OM0000009908.
