Oman’s OQ Gas Networks (OQGN), the pipelines business of state oil giant OQ, is planning to proceed with an initial public offering (IPO) by selling up to a 49% stake in the company, reported Oman News Agency.
OQGN intends to list its shares on the Muscat Stock Exchange in October 2023.
This will allow investors to gain access to the exclusive operator and owner of the Natural Gas Transportation Network (NGTN).
Through the IPO, OQCN is expected to raise between $700m (OR273m) and $800m (OR312m), reported Reuters, citing a source with knowledge of the matter.
The IPO, however, is conditional on OQGN receiving the required regulatory approvals from the Capital Market Authority.
OQGN managing director Mansoor Al Abdali was quoted by Oman News Agency as saying: “OQGN, as the exclusive operator of the NGTN in Oman, provides critical infrastructure to deliver gas that supports the industries and economy of Oman.
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“This listing, which we are proud to be conducting on the Muscat Stock Exchange, will allow us to move the company into the next chapter of growth.”
The stake in OQ Gas Networks SAOG is due to be offered by OQ through the Oman Energy Trading Company and Oman Oil Services.
OQGN chairman and OQ group CEO Talal Al Awfi said: “The IPO of OQGN is part of a broader divestment programme envisioned by the government and being implemented by Oman Investment Authority; the integrated sovereign wealth fund of the Sultanate of Oman.”
OQGN, which is the exclusive operator of Oman’s gas transport system, is engaged in natural gas supplies to power plants, free zones, industrial clusters, LNG complexes and other customers.
In March 2023, OQ raised $244m by floating a 49% stake in its oil drilling business, Abraj Energy Services.