Oman to Launch $2 Billion IPO for OQEP

Oman's state-run energy company OQ plans to sell a 25% stake in its subsidiary, OQ Exploration and Production (OQEP), in an initial public offering (IPO) scheduled for October on the Muscat Stock Exchange, which is anticipated to be the largest IPO in the Gulf nation’s history. The offering is expected to raise about $2 billion, valuing OQEP at around $8 billion, with the company committing to substantial annual dividends of about $600 million from 2024 to 2026. OQ will retain a 75% ownership stake post-offering and aims to attract both institutional and small investors, with 60% of shares allocated to the former. This IPO aligns with Oman’s broader strategy to diversify its economy and privatize state assets. OQEP, Oman’s largest pure-play oil and gas exploration and production company, holds significant reserves and has seen production expand significantly since its inception in 2009. The subscription period is set to begin this month, pending regulatory approvals.