Sunday 24 / November / 2024
Muscat: The OQBI IPO has seen significant levels of interest from some of the largest investors in Oman and the wider region. Each of these anchor investors has provided irrevocable commitments to subscribe for 7.5% of the offer size (totalling 30% of the Offer Size)in OQBI which is opening up its IPO to investors in Oman and institutional investors worldwide in the coming week.
OQBI has welcomed this strong endorsement of the company and the IPO with CEO Khalid Khalfan Al Asmi commenting, “It is with great pride that we welcome these four renowned investors to the OQBI IPO. Their investment serves to reinforce our ambition of delivering success through the IPO and beyond, creating value for our customers, partners, employees and investors.”
These entities range from – in alphabetical order - Falcon Investments, a subsidiary of Qatar Investment Authority (QIA), the Gulf Investment Corporation (GIC), the Saudi Omani Investment Company, a wholly owned entity of the Public Investment Fund and the Omani Social Protection Fund. Each of these anchor investors has committed to subscribe for some OMR 14.1 million (totalling circa OMR 56.4 million in aggregate) in the IPO at the top of the price range of bzs 111 per share. For Falcon Investments and the Saudi Omani Investment Company this is the second time that they have played an anchor role in an IPO from OQ Group.
It is significant that OQBI is the only integrated producer of methanol, ammonia, and LPG products in the Sultanate.
For the Saudi Omani Investment Company, Muteb Al Shathri, Acting CEO, said: “We are delighted to become a leading investor in OQBI as part of SOIC’s active investment programme in Oman, to build on our existing portfolio in the country and to enable new and promising investments in Oman’s rapidly growing economy. OQBI is a leader in chemicals and a highly profitable business with a superior global cost position and with robust gas supply and off take arrangements. The management team has delivered a successful expansion of the business over the last few years, and we see scope for further upside.”
There are two investors making their first anchor investment in an OQ IPO with GIC, a leading financial institution focused on developing private enterprise and fostering economic growth in the Gulf Cooperation Council (GCC) region, recognising that: “OQBI is a strong Omani and regional business with significant potential for further growth. This is an important transaction and the listing of OQBI through this IPO is another signal of the rapid development both of excellent businesses and strong local capital markets. We are very pleased to be able to participate in this transaction."
The final anchor is from closer to home and recognizes how far Oman has come in the recent period to establish itself as a market which is recognised on international capital markets. Nabil Al Mahrouqi, Head of Regional Investments of the Social Protection Fund, said: “The IPO of OQBI marks another step in the development of the Sultanate of Oman as an investment destination with the increased profile allowing investors to understand the quality of the businesses operating here. OQBI represents a different type of investment opportunity, and we are proud to be a partner on its journey through the IPO.”
The anchor investor agreements underscore strong market confidence domestically and internationally in the quality of the offer. The four institutional investors bring credibility and stability, while reducing post-listing price volatility. This strong foundation, in particular, given the international nature of these investors, positions OQBI for sustained growth and success in the public market.
With 30% of the IPO already earmarked for these four investors and with a series of roadshow meetings with large institutional investors locally and around the world over the coming weeks, it is clear why so many Omanis are already asking their banks for more information about how to participate in a much-anticipated IPO.
