The private placement of OQ Exploration and Production (QQEP) Company on the Muscat Stock Exchange is a significant event for the Omani economy, investors, and the region as a whole. This IPO marks the largest offering in Oman and the Arabian Gulf in 2024, showcasing the interest of both local and international investors in the Sultanate of Oman. Dr. Al Moatasem bin Musabah al Mutairi, Head of Investment at Bank Sohar International, shared that the offering was tailored towards individuals, with 40 percent of the shares allocated to this category.
The individual category was further divided into two parts, with one portion allocated to large individual investors and the other to small individual investors. If the demand from individuals is less than 40 percent of the offering size, all the shares will be allocated to individuals. However, if demand exceeds this threshold, the Financial Services Authority has the right to adjust the allocation mechanism. Abdul Wahid bin Mohammed Al Murshidi, Head of Islamic Banking at Bank Sohar, highlighted the overwhelming interest from institutions, with the offering exceeding 100 percent subscription in the first two days.
Mustafa bin Ahmed Salman, chairman and CEO of United Securities, emphasized the positive impact of the OQEP IPO on the Muscat Stock Exchange. Financial analyses predict a 20 percent increase in the share price for Omani individuals, showcasing the potential for strong returns. International companies have also shown interest in subscribing to OQEP shares, further highlighting the appeal of the offering. Louay Bataineh, CEO of Ominvest International Holding Company, noted the benefits of the subscription for Omani citizens, providing them with an opportunity to invest in a government company operating in the oil and gas sector.
Upon completion of the subscription and listing, liquidity in the market is expected to increase, attracting new investors and enhancing the status of the Muscat Stock Exchange. The collaboration between Omani banks and international institutions will pave the way for successful future offerings, supporting the growth and development of the exchange. The interest in the OQEP IPO reflects a positive outlook for the Omani economy and investment landscape, signaling potential for further growth and development in the region’s financial markets.
