Oman’s OQ to launch IPO for oil and gas business

OQ, an Omani state-run oil and gas company, announced its intention to launch an initial public offering (IPO) for its exploration and production business, aiming to raise billions as part of a broader privatization strategy in Oman. This move aligns with similar actions taken by major oil companies in the region, such as Saudi Aramco and the Abu Dhabi National Oil Company, indicating a trend towards market engagement in the Gulf. The company plans to offer up to 25% of its shares, with estimates suggesting a total valuation of around $8 billion, which would make the stake worth approximately $2 billion. The CEO of OQ, Ashraf Hamed Al Mamari, emphasized that this IPO reflects the company's commitment to fostering growth opportunities for both OQ and the Sultanate of Oman. The planned listing is set for October, contingent upon receiving necessary regulatory approvals. Following the IPO, OQ intends to distribute dividends of $150 million for the first two quarters and an annual dividend of $600 million, with additional performance-linked dividends. Founded in 2009, OQ is the third-largest oil firm in Oman, following Petroleum Development Oman and Occidental Petroleum. The company plays a significant role in the country's oil production, which stands at around 1 million barrels per day. Oman, while not a member of OPEC, is part of the OPEC+ coalition, with China being its primary crude oil client. This IPO could invigorate the Muscat Stock Exchange, which has been perceived as less active compared to other Gulf markets. The move is expected to enhance investor confidence and stimulate economic growth within the region, marking a significant step in Oman's economic diversification efforts.