An Omani state-run oil and gas company, OQ, formerly known as the Oman Oil Co., has announced plans for an initial public offering of its exploration and production business. This move signifies a significant step towards privatization in the sultanate, potentially raising billions in capital. Following in the footsteps of industry giants like Saudi Aramco and Abu Dhabi National Oil Co., OQ's IPO could inject new life into the Muscat Stock Exchange, historically considered one of the quieter markets in the Gulf Arab states.
The company intends to offer up to 25% of shares in its exploration and production arm, with estimates suggesting a total valuation of around $8 billion. The stake being put up for sale is expected to be valued at approximately $2 billion. OQ's CEO, Ashraf Hamed Al Mamari, expressed the company's commitment to seizing growth opportunities for both the company and Oman through this strategic move.
The IPO is scheduled for October, subject to regulatory approvals. OQ plans to distribute dividends of $150 million for the first two quarters post-listing, with an annual dividend target of $600 million, in addition to performance-linked dividends.
Established in 2009, OQ is the third-largest player in Oman's oil industry, trailing behind state-owned Petroleum Development Oman and U.S. firm Occidental Petroleum. Oman, a member of the OPEC+ coalition, produces approximately 1 million barrels of oil per day, with China being its primary crude oil customer.
Under the late Sultan Qaboos bin Said, Oman utilized oil revenues to transform the nation from a state with only three schools and stringent laws prohibiting modern amenities like electricity, radios, eyeglasses, and umbrellas. Sultan Qaboos passed away in January 2020, succeeded by Sultan Haitham bin Tariq, who aims to bolster Oman's financial stability while maintaining its role as a key mediator between Iran and the Western world.
