OQ intends to offer 1.69 billion shares, which represent 49% of OQ Base Industries’ total share capital. The shares are priced between Bzs106 and Bzs111 each, targeting investors both within Oman and abroad. The IPO is being led by major financial institutions, including Bank Muscat, which has been appointed as the offering’s bookrunner.
The decision to list the methanol and ammonia unit follows OQ’s larger vision of capitalizing on its position as a key player in Oman’s energy sector. By floating a significant portion of OQ Base Industries on the Muscat Securities Market (MSM), OQ aims to raise funds that will allow the company to further develop its chemical and industrial capabilities. The IPO is seen as part of a wider effort to modernize Oman’s economic landscape and attract foreign investment to fuel its growth.
The methanol and ammonia business under OQ Base Industries is well-positioned in the global market. Oman’s production of these chemicals is vital for its industrial infrastructure and is expected to benefit from growing global demand, especially in markets like Asia, where chemical production continues to surge. Methanol is used extensively in plastics, paints, and pharmaceuticals, while ammonia is crucial for fertilizers, a key industry as the world grapples with agricultural sustainability.
The IPO also serves as a means to fulfill the country’s Vision 2040 goals. Oman has been looking to reduce its reliance on oil revenues and diversify its economy by investing in non-oil sectors like manufacturing and chemicals. The success of the OQ Base Industries offering could set the stage for other state-owned enterprises to follow suit, bringing further transformation to the sultanate’s industrial sector.
Oman’s strategy to privatize parts of its state-run enterprises has been gaining momentum in recent years. The country’s government has been keen to introduce more public-private partnerships (PPP), with an eye on long-term economic sustainability. The IPO of OQ Base Industries could attract global investors, providing them with an opportunity to tap into Oman’s thriving industrial sector, while also offering the government a source of much-needed revenue.
Several major institutional investors have already shown interest in the IPO, signaling strong market confidence in OQ Base Industries’ future performance. The pricing range for the shares indicates the high valuation the company is being pegged at, reflecting both the strength of Oman’s industrial sector and the potential for growth in the global chemical market.
OQ’s commitment to sustainability and innovation in its chemical business will likely play a significant role in the success of the IPO. As countries and industries around the world focus on achieving net-zero emissions and sustainability goals, chemical companies like OQ Base Industries that prioritize cleaner, more efficient production methods will stand out. The company has already started integrating green technology into its operations, including efforts to reduce its carbon footprint.
The IPO is also part of OQ’s strategy to open up its operations to a broader group of investors, including retail investors. Historically, Oman’s stock market has seen limited retail participation, but the offering of shares in a prominent national entity like OQ Base Industries is expected to spark interest from domestic investors, who are eager to participate in the growth of the country’s industrial sector.
The government’s involvement in the IPO process is also an important factor in the offering’s success. As the majority shareholder in OQ, the government is keen to see the company’s listing succeed and will likely play an active role in encouraging domestic investment in the offering. Additionally, Oman’s regulators have worked to ensure that the Muscat Securities Market is attractive to foreign investors, implementing necessary reforms to improve transparency and governance.
OQ’s move to list its methanol and ammonia unit is also a clear reflection of broader trends in the Middle East, where state-owned enterprises in the energy and industrial sectors are increasingly being privatized or partially listed on the stock market. The UAE’s ADNOC and Saudi Arabia’s Aramco have set strong precedents in the region, showing how energy and industrial giants can use IPOs to raise capital while also boosting market confidence in the broader economy.
For OQ, the IPO of OQ Base Industries represents an important milestone in its ongoing transformation. The company is expected to use the proceeds to fund further investment in technology and to improve operational efficiency. Additionally, the public listing will provide OQ with the flexibility to explore new business ventures and partnerships, reinforcing its position in the global industrial sector.
The pricing of the shares will likely be one of the key areas of focus during the IPO roadshow, as investors evaluate the company’s prospects. At the higher end of the range, the offer could raise close to $490 million, providing a significant capital infusion that will help OQ expand its presence in key markets worldwide. At the lower end, the offering would still represent a strong valuation, underscoring the resilience and potential of Oman’s chemical sector.