Oman’s OQ Gas Networks to offer 49% shares for public subscription

OQ Gas Networks SAOG (OQGN), the exclusive owner and operator of Oman’s gas transportation network, announced on Monday, September 4, 2023, its intention to proceed with an initial public offering (IPO) and listing on the Muscat Stock Exchange (MSX).

The public subscription — planned during October 2023 after approvals from the Capital Market Authority (CMA) — will enable investors to gain exposure to OQGN as the monopoly owner of the Natural Gas Transportation Network (NGTN).

According to details shared at a press briefing hosting by OQ Group and its subsidiary OQGN, the Selling Shareholders intend to offer up to 49 per cent of OQGN’s total share capital. Immediately following the Offering, a minimum of 51.0 per cent shareholding will continue to be held by OQ.

The IPO will be offered in two tranches:

• Category I Offer represents 70 per cent of the total Offering (out of which 30 per cent of the Offer Shares have been reserved for Anchor Investors) and will be made to eligible investors in Oman and qualified institutional and other investors in a number of countries.

• Category II Offer represents 30 per cent of the total Offering for retail investors.

Mansoor al Abdali, Managing Director of OQGN, commented: “OQGN, as the exclusive operator of the NGTN in Oman, provides critical infrastructure to deliver gas that supports the industries and economy of Oman. This listing, which we are proud to be conducting on the Muscat Stock Exchange, will allow us to move the company into the next chapter of growth. The core focus of OQGN will remain unchanged, focusing on the delivery of vital resources supporting the growth of our customers and the Sultanate of Oman. Our work is underlined by a commitment to reliability, efficiency, safety and sustainability. Together with our partners at OQ and OIA, we look forward to the listing and are excited by the opportunities it brings – to our customers, our investors, our employees, and the people of Oman.”

Talal al Awfi, OQ Group CEO and OQGN Chairman, added: “The IPO of OQGN is part of a broader divestment programme envisioned by the government and being implemented by Oman Investment Authority (OIA) - the integrated sovereign wealth fund of the Sultanate of Oman. This marquee offering is an opportunity for Omani and international investors to participate in Oman’s Vision 2040, the long-term national development plan that aims to make Oman a prosperous, competitive and sustainable nation and to rapidly diversify its economy. The listing of OQGN, which owns and operates critical gas transportation infrastructure in Oman, is in line with this ambition while enriching the dynamically developing Omani stock market. We look forward to the listing on the MSX and are excited for what’s to come.”

The subscription period for Category I and Category II investors is expected to commence in September. Admission of shares for trading on the MSX is expected in October 2023.