The Capital Market Authority of the Sultanate of Oman approved the prospectus for the subscription of OQ Gas Networks, a subsidiary of OQ, owned by the Oman Investment Authority, which is undergoing transformation into a public joint stock company.
This announced approval comes in a statement monitored by the specialized energy platform, today, Sunday, September 17 (2023), through the offering of no less than two billion shares, representing 49% of the company’s capital, for public subscription, which is the largest offering in the history of the capital market. Omani, in terms of size and market value of the company.
OQ’s subscription to gas networks comes within the National Program for Financial Sustainability and Financial Sector Development, with the aim of achieving the strategic goal of the “Oman 2040” vision, to develop the private sector and grow the economy, making the capital market a sustainable engine in development and wealth creation programs in the Sultanate of Oman, according to what was published by the agency. Omani news.
Exit plan
The approval of the prospectus for the subscription of OQ for Gas Networks represents the second episode in the exit plan supervised by the Oman Investment Authority, as the prospectus states that the subscription period for the company’s shares will extend for about two weeks, starting from September 26 for the first and second categories.
The subscription period continues until October 9, 2023 for the first category, while subscription for the second category, represented by individuals, will close on October 5, according to the dates monitored by the specialized energy platform.
It is noteworthy that the Omani company intends to offer the equivalent of 212 million Omani riyals (548.8 million US dollars), while the Capital Market Authority called on those wishing to invest within the IPO of OQ Gas Networks, both citizens and residents, to prepare by opening an investor account through the “Company Muscat Clearing and Depository, which is the entity responsible for organizing and maintaining shareholders’ records, according to a statement from the Muscat Stock Exchange.
Part of the conference announcing the IPO of OQ Gas Networks – Photo from Oman News Agency
Experts and economists in the Sultanate of Oman believe that the IPO confirms the possibility of offering major companies on the Muscat Stock Exchange, including companies related to infrastructure or the main backbone of the economy in the country, which is oil and gas. They expect that the expected returns, investment ratios, profits and distributions will exceed the current returns on the Muscat Stock Exchange.
The prospectus explains that the number of shares offered for subscription is divided into 3 main categories: the institutional category (the first category), the individuals category (the second category), and the major investors category (the third category).
With regard to the offering price, it became clear that the first category – which is the institutional category – may determine its price range, by building the order book, as the range is determined from 131 baisas to 140 baisas per share, and the share price for individuals will be calculated at 126 baisas per share, by calculating the price The highest, which is 140 baisas minus the 10% discount rate.
(Omani Riyal = 1,000 baisa = 2.60 US dollars)
Shares of different categories
The prospectus indicates that the share of the first category – represented by institutions – amounts to 40% of the total offering, which is divided equally among local institutions, regional and international institutions, and the minimum subscription for OQ Gas Networks for this category will be 100 thousand shares, without specifying the maximum subscription limit.
As for the category of individuals referred to as the second category in the OQ Gas Networks prospectus, 30% of the total offering will be allocated to it, and the minimum subscription for this category will be 1,000 shares, without there being a maximum limit.
Muscat Stock Exchange headquarters – photo from its page on the “X” platform
At the same time, 30% of the offering size was allocated to the category of major investors, as this category represents qualified investors from inside and outside the Sultanate of Oman, according to what the bulletin shows, and was reviewed by the specialized energy platform.
She drew Capital Market Authority The prospectus is the basic reference for information and data related to OQ’s subscription to gas networks, as it is prepared by the issuance manager, in accordance with legal requirements, to help the investor make his investment decision, and determine his investment directions in a sound and systematic manner, away from the influence of rumors and news from unknown sources.
The Authority called on the public, including individuals and institutions, to follow the introductory activity about the issuance organized by the entity issuing the security, represented by OQ Gas Networks Company and the issuance manager, with the aim of understanding the details of the prospectus and the most important information it needs to make its investment decision with sufficient awareness.
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2023-09-17 15:14:34
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