The Financial Services Authority (FSA) has approved the prospectus of OQ Exploration and Production Company (OQEP), a company that is transitioning into a public joint stock company. As part of this transition, the company is offering two billion shares, which represent 25 percent of the company’s capital, through public subscription. This offering is the largest in the history of the Omani capital market and is a significant step towards meeting the objectives of Oman Vision 2040, which aims to attract national and foreign investments.
OQ Exploration and Production Company is an affiliate of Oman Investment Authority (OIA), and the offering of shares for subscription is part of OIA’s efforts to divest from some government assets. This move will help diversify and expand the shareholder base of the company. Investors will have the opportunity to invest in a major company specializing in oil and gas exploration and production in Oman. The offering will be open for two weeks, starting from September 30, 2024, with the first segment of subscription closing on October 10, 2024, and the second segment for individuals closing on October 9.
The prospectus of the OQEP offering shows that the number of shares available for subscription is divided into three categories: institutional, individuals, and major investors. The institutional category will set its price range by building an order book, with shares priced at 370 to 390 baisas per share. For Omani individuals, the share price will be 351 baisas per share, calculated from the highest price of 390 baisas minus a 10 percent discount. This lower price aims to encourage Omanis to participate in the offering and take advantage of investment opportunities. Non-Omani individuals will pay 390 baisas per share.
The institutional category will account for 40 percent of the total offering, divided equally between local, regional, and international institutions, with a minimum subscription of 100,000 shares. The individuals’ category will receive 40 percent of the offering, with a minimum subscription of 500 shares and a maximum of 28,500 shares. The remaining 20 percent of the offering volume is allocated to major investors, who are qualified investors from Oman and abroad, according to the prospectus.
Overall, the approval of the OQEP prospectus by the FSA marks a significant milestone in the company’s transition to a public joint stock company. The offering of two billion shares is the largest in the history of the Omani capital market, signaling a major step towards meeting the objectives of Oman Vision 2040. The offering will provide investors with the opportunity to invest in a leading company in the oil and gas exploration and production sector in Oman, while also diversifying and expanding the shareholder base. With the offering set to open for two weeks, interested investors have the chance to participate in this historic opportunity.
