The IPO follows a series of successful public offerings from OQ Group’s other subsidiaries, including Abraj Energy Services and OQ Gas Networks. This new offering is aimed at attracting both regional and international investors to the growing energy and industrial sectors in Oman. The company has stated that the funds raised will support its operational goals and bolster its competitiveness in key markets across Asia, the Middle East, and North Africa, with additional exposure to European and African regions.
OQBI, headquartered in Oman’s Salalah Free Zone, operates three advanced plants that produce a combined annual output of 1.8 million metric tons of methanol, ammonia, and LPG products. These facilities rely on rich and lean natural gas feedstocks provided through long-term agreements with Integrated Gas Company, utilizing infrastructure managed by OQ Gas Networks. Most of its output is exported under exclusive take-or-pay agreements with OQ Trading, securing stable revenue streams.
CEO of OQ Base Industries, Khalid Khalfan al Asmi, emphasized the significance of the IPO, attributing it to the company’s robust business model and Oman’s strategic geographic location, which supports efficient global distribution. He highlighted the organization's operational strength and a dividend policy designed to appeal to potential shareholders. Dividends are expected to be distributed semi-annually, with projections for fiscal year 2024 amounting to RO 32.7 million, showcasing the company’s commitment to returning value to its investors.
Financial advisors for the offering include Bank Muscat, Bank Dhofar, and Morgan Stanley as global coordinators. Additional stakeholders such as Kamco Investment Company and BSF Capital will serve as joint bookrunners. This collaboration reflects the significant investor interest that OQ Group has generated through its diversified portfolio and ongoing expansion in the energy and industrial sectors.
The Salalah-based company leverages Oman’s advantageous access to maritime trade routes, enabling its products to meet rising demand in key economic regions. Its integrated production model ensures cost-efficiency and enhances its ability to maintain competitive pricing for its clients and partners. With LPG products catering primarily to domestic use, such as cooking gas, methanol and ammonia outputs are critical for industries including fertilizers and chemical manufacturing.
OQBI’s IPO is expected to attract substantial investor interest, bolstered by the group's solid financial performance. The subsidiary reported $510 million in revenue for 2023, achieving an adjusted EBITDA margin of 43.1%, demonstrating its operational efficiency and strong market positioning. This move aligns with OQ Group’s broader strategy of monetizing its assets while driving long-term value through sustainable growth.
Market observers view the offering as a continuation of Oman’s efforts to diversify its economy, moving away from a reliance on oil and gas exports by focusing on downstream industries and integrated production chains. This strategic shift is aligned with the country’s Vision 2040 initiative, which emphasizes private sector growth and foreign investment.