OQ to Offer 49% Stake in Methanol and LPG Production Unit in Oman

Oman’s state-owned energy giant OQ has announced plans to sell a 49% stake in its methanol and liquefied petroleum gas (LPG) unit through an initial public offering (IPO) on the local stock exchange. This move follows OQ’s successful raising of $2 billion from a previous IPO related to its exploration and production segment.

The IPO of OQ Base Industries (OQBI) is part of OQ’s privatization program aimed at diversifying Oman’s economy and reducing government debt. This listing represents a unique opportunity for investors to engage with the only production company of methanol, ammonia, and LPG in Oman.

The offer period for OQBI’s IPO will commence in November, lasting for 30 days, with shares expected to start trading on the Muscat Stock Exchange in December. OQBI currently has a production capacity of 1.8 million metric tons per annum, with methanol accounting for approximately 1.1 million metric tons of that total.

OQBI reported a revenue of $510 million and an adjusted EBITDA margin of 43.1% for the previous year. They anticipate paying dividends of around $63.6 million for the first nine months of 2024.

OQ’s CEO, Ashraf Hamed Al Mamari, stated that the IPO follows the successful launch of three previous offerings, indicating strong investor interest driven by the company’s solid financial performance and attractive dividend policy.