With financing solutions offered to
individual and non-individual investors
In affirmation to its pioneering role in investment banking and contributions to strategically developing the capital market sector in the Sultanate, Bank Muscat, the leading financial services provider in the Sultanate of Oman, has been appointed as the Issue Manager of the Initial Public Offering (IPO) of OQ Base Industries (OQBI), the only integrated producer of methanol, ammonia, and Liquified Petroleum Gas (LPG) products in the country. The Bank is also acting as a Joint Global Coordinator, Book Runner, and Collecting Bank with other local, regional and international financial institutions.
OQ Base Industries has announced offering up to 49% of its shares for the IPO and listing them on the Muscat Securities Exchange (MSX). The announcement of the OQBI IPO came as part of Oman Investment Authority’s (OIA) plans to divest government shareholdings, aiming to support economic diversification and create development and innovation opportunities in the energy sector in the Sultanate.
Following the approval of the IPO Prospectus by Financial Services Authority (FSA), OQBI announced that the subscription period for the IPO will commence on 24th November 2024 for both Category I investors (institutions) and the Category II (individuals). The subscription will close on 1st December 2024 for Category I investors and on 28 November 2024 for Category II investors.
The price range for Category I investors has been set at 106 to 111 baisa per share, while the subscription price for individuals will be 111 baisa per share. The final allotment price for individual investors would be adjusted to be same as Category I investors. The pricing translates into an attractive dividend yield of 8.5% to 8.9% at the high and low end of the price range respectively, offering the highest yield amongst all recent OQ IPOs. This pricing structure encourages investors to participate in and take advantage of a compelling investment opportunity. Before subscribing to the OQBI IPO, investors are requested to refer to the Prospectus available on the Financial Services Authority’s website at www.fsa.gov.om.
The Bank is providing 1:1 financing to its individual customers who wish to subscribe to the offering, with a minimum financing amount of OMR 1,000 and a maximum financing amount of OMR 200,000 per investor through Mobile Banking and Internet Banking. Customers requesting for financing amounts in excess of OMR 200,000 may approach Bank Muscat’s nearest branch and discuss their specific requirements with the Bank’s branch team. If customers are not taking any financing solution, they may subscribe into the offering with a maximum subscription limit of OMR 400,000 and OMR 800,000, through the Bank’s Mobile Banking and Internet Banking platforms, respectively. Furthermore, there is no prepayment charge payable by the individual customers when the financing amount is fully repaid to the Bank at the time of processing of refund of excess amount of subscription from Muscat Clearing and Depository (MCD). Institutional investors interested in obtaining IPO financing may consult the Bank’s relationship managers to discuss suitable financing options based on their needs.
On this occasion, Khalifa Abdullah Al Hatmi, Deputy General Manager, Investment Banking and Capital Markets at Bank Muscat, said: “We take pride in partnering with OQ Base Industries and appreciate OQ’s and OIA’s trust in the market leading capabilities of Bank Muscat’s Investment Banking team for executing this landmark transaction, which is expected to generate substantial interest at the local, regional and global levels. The Bank, represented through its Investment Banking and Capital Markets Division, has extensive experience in managing large capital market transactions, executing strategic IPO transactions for Government owned institutions and private corporates, and intricate understanding of market complexities and customer needs. The Bank will continue its commitment to providing integrated investment and financial solutions to support the financial market.”
Bank Muscat’s appointment as the Issue Manager for OQBI, following its contribution to the successful execution of ~US$750 million for the OQGN IPO in 2023, underscores the trust the Bank holds locally, regionally, and globally, from individuals, corporations, and financial institutions. It also reaffirms the Bank’s position as the leading provider of financial and advisory solutions in the Sultanate. In this regard, the Bank offers a wide array of financing solutions that highlight its financial expertise and its leading role in meeting the growing needs of its individual and institutional customers. These services and solutions include corporate and project financing, debt restructuring, initial public offerings, equity-quasi financing, private placements, and mergers and acquisitions in Oman.
