OQ Basic Industries Corporation is set to offer up to 49 percent of its shares in an initial public offering (IPO) to be listed on the Muscat Stock Exchange (MSX). This move aims to diversify the company’s shareholder base, expand its network of relationships, and enhance its position among key stakeholders while providing liquidity opportunities for shareholders. The subscription for first and second category investors is expected to start in November, with the shares being listed on the exchange in December 2024. The company operates three advanced plants producing methanol, ammonia, and LPG products, with a combined production capacity of 1,816 kilotons per year.
OQ Basic Industries’ IPO offering is Sharia-compliant, as confirmed by BankDhofar Islamic’s Sharia Supervisory Board. The company is strategically located in the Salalah Free Zone near the Salalah Port, giving it a competitive advantage to access markets in the Middle East, North Africa, Europe, and Asia. The CEO of OQ Group, Ashraf bin Hamad Al Maamari, highlighted the success of previous IPOs by the group, noting the wide interest from investors due to the company’s financial and operational performance. The decision to go public reflects the company’s growth plans and investment in the energy sector.
Chairman of OQ Basic Industries, Eng. Ali bin Mohammed Al Lawati, sees the IPO as a significant step in the company’s journey towards further growth and development, aligning with its future aspirations to supply global markets with its products. This move also aims to enhance governance and transparency within the company. CEO Eng. Khalid bin Khalfan Al Asmi emphasized the strategic efforts made by the team and the trust gained from customers and partners, attributing the company’s competitiveness and value in global markets to Oman’s strategic location.
Post-offering, OQ Basic Industries plans to adopt a semi-annual dividend policy to pay dividends to shareholders. It aims to return all distributable free cash flows to shareholders after considering growth opportunities and credit rating considerations. The company expects to distribute dividends of OMR 32.7 million (approximately USD 85 million) for the financial year 2024, with a first dividend of approximately OMR 24.5 million (approximately USD 63.6 million) and a second dividend of approximately OMR 8.2 million (approximately USD 21.3 million) in 2025. In the following years, the company intends to increase dividends by at least 5 percent annually.
By offering 49 percent of its shares for subscription, OQ Basic Industries opens up the opportunity for local, regional, and international investors to become part of a major asset in the Sultanate of Oman with significant growth potential in global markets. The company’s strong dividend policy and commitment to returning cash flows to shareholders indicate a commitment to delivering value for investors. As the IPO progresses, OQ Basic Industries aims to solidify its position in the market while actively engaging with stakeholders to drive growth and success in the energy sector.
