Omani energy company OQ has announced the price range for the upcoming initial public offering (IPO) of its gas pipelines unit, OQ Gas Networks (OQGN),

OQ and other selling shareholders are divesting a total of 2.12 billion shares or a 49% stake in the gas pipeline business.

For institutional investors, the shares have been priced between OR0.131 ($0.34) and OR0.14 per share and for retail investors it has been kept at OR0.126.

According to Reuters, at the top end, the IPO could fetch $772m for OQGN at an OR606m valuation.

Saudi Omani Investment Company, Fluxys International and Falcon Investments have each committed to acquire 10% of the offering as anchor investors.

The book-building period for institutional investors will run from 26 September to 9 October, and the retail offer will end on 5 October.

On October 12, OQGN will reveal the final price, and on 24 October shares are expected to begin trading.

OQGN, which supplies natural gas to power plants, industries, LNG facilities and other clients, operated  a pipeline network that spanned nearly 4,031km as of 31 December 2022,

OQGN will be the second IPO under Oman’s privatisation programme, which aims to increase state revenue and develop the bourse.  

OQ raised $244m when it floated Abraj Energy Services in March this year.

Separately, OQ is looking to complete the sale of its 40% stake in Block 60 and Block 48 before the end of this year, reported Oman Daily Observer.

The sale could value the assets up to OR548m.

It is the most recent in an array of divestitures that OQ Group and other subsidiaries of its parent holding company Oman Investment Authority (OIA) have planned to support the government’s annual budget, the local publication said.