OQ Gas Networks (OQGN), the gas pipeline business of Omani state-owned oil business OQ, has raised OR288m ($750m) in its initial public offering (IPO), reported Bloomberg.

Following the conclusion of the book-building and public subscription processes, the final offer price is fixed at 140 baizas per share.

The IPO, said to be Oman’s biggest, drew more than OR4bn in total gross demand, indicating an oversubscription level of 14 times, according to the National.

OQ offered around 2.1 billion shares in the IPO, representing a 49% stake in OQGN.

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Following the listing, OQ will continue to own the remaining 51% stake in the company, which exclusively operates Oman’s gas transport system.

It is engaged in supplying natural gas to power plants, free zones, industrial clusters, liquified natural gas complexes and other customers.

As anchor investors, Fluxys Belgium, the Public Investment Fund of Saudi Arabia, and the Qatar Investment Authority agreed to purchase a combined 30% of the IPO.

Shares of OQGN are expected to start trading on the Muscat Stock Exchange from 24 October 2023.

OQGN’s IPO forms part of Oman’s privatisation programme to bolster the economy and develop the country’s stock exchange.

Oman Telecommunications raised $748m through an IPO in 2005.

Announcing the IPO, 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.”

Earlier in 2023, OQ raised $244m by selling a 49% stake in Abraj Energy Services, its oil drilling business.