Oman's OQ Settles On BofA for $800 Million Gas Pipeline IPO

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Oman's OQ Settles On BofA for $800 Million Gas Pipeline IPO

Mon, 09/19/2022 - 08:23
Flag of Oman (© Shutterstock/patrice6000)
Flag of Oman (© Shutterstock/patrice6000)

Oman energy firm settled on Bank Muscat and Bank of America Corp. to advise the initial public offering of its gas pipeline units as the sultanate kickstarts its privatization program, people familiar with the matter disclosed.

According to insiders who spoke to BNN Bloomberg on anonymity, the IPO of OQ Gas Network could raise $800 million, adding that the company had communicated a possible dual listing in Saudi Arabia and Muscat.

The list of banks set to join the deal may grow, with other information such as its listing location and size may change, the insiders they added.

The Oman Investment Authority sells OQ shares as part of its plan to boost state investment coffers. In the energy-rich countries in Gulf, governments are planning on ways to sell assets to attract international investors, have funds for their diverse economy, and boost their trade volume.

The United Arab Emirates and Saudi Arabia have initiated a similar program, which has drastically increased IPOs and initiated a sale that led to a greater begging of the year in the Middle East accompanied with offerings.

State Sales
In June, Oman stated it was planning to sell its shares in two of its OQ units, and a manufacturing firm did not disclose its name or details. In the previous decade, the country had fewer IPOs, with the latest sizeable deal being the 2010's Omani Qatari Telecommunications Co.'s IPO, which raised a whopping $4475 million.

If OQ goes for the dual listing, it will become one of the first Middle Eastern companies. Americana Group, which operates KFC and Pizza Hut restaurants across the region, is also in the process of listing in Riyadh and Abu Dhabi.