Several strategies are used to draw in domestic and international money, including the establishment of new initiatives and the collaboration of already existing ones with strategic partners who have the necessary skills and cash available for investment.
Perhaps purchasing OQ Gas Networks shares is one way to draw in foreign capital and use local investors' savings in investment vehicles with alluring returns that produce annual income over a long period of time, such as assets that investors hold on to rather than freezing their money in bank deposits and reaping annual returns. IPOs are essential for attracting investors, using local capital, and achieving goals for governments, enterprises, and investors, among others. In reality, IPOs enlarge the pool of investors in government assets, increase the flow of money into nations, and energise local markets by supporting activities like purchasing shares, making cash deposits, recovering surplus funds, and other acts from which others gain. This calls people to triple the effort on more initial public offerings (IPOs) for public and private firms as one of the methods to attract local and foreign investments and revitalize the Muscat Stock Exchange.
The success of Abraj Energy Services Company's initial public offering, which made it the first energy company to list on the Muscat Stock Exchange, inspired OQ Gas Networks to offer 49% of its shares for subscription, according to a statement from the Capital Market Authority.
OQ also had objectives and goals that aimed to increase citizen and investor ownership of public assets, make them partners in the employment process for these successful companies, recycle money from these subscriptions into other investments that add value to the country and the citizen, and increase the economic and business opportunities available to Omani firms for greater openness and aspiration for a better future that benefits the Omani economy. As a result, the Omani economy will be better able to join the global economy and form new alliances that will aid in its growth.
One of the objectives of the IPOs is also the liquidation of local liquidity in banks, which totals more than RO 21 billions, of which RO 17.9 billion are private sector deposits deposited in banks, according to statistics from the National Centre for Statistics and Information in June 2023. In addition to using the citizens' funds in investment vehicles that ensure a return on their investment, these subscriptions will also be used in economic initiatives. This will increase investor trust in the firms and their subscriptions.
The largest offering in the Sultanate of Oman, the shares of OQ Gas Networks Company, are expected to do well on the market. The company anticipates paying out profits totaling RO 33 million for the first nine months of the current year in January 2024, as well as a second dividend totaling RO 11 million for the final three months of 2023 in April 2024. These projections have led the market to expect that it will receive the highest value, or four times the offering value. It also anticipates paying earnings that are 90 per cent more than those of the years 2025 and 2024 , respectively.
The company, its skills, and its business are another factor that the investor and underwriter consider. In addition to revenues totaling over RO 160.4 million in 2022, OQ Gas Networks also generated earnings before interest, taxes, depreciation, and amortization of almost RO 96.4 million.
Regarding its accomplishments, statistics show that in 2022, the company, in addition to having exclusive rights to transport gas for fifty years, transported about 39.4 billion cubic meters of gas from six gas producers to a diverse consumer base that includes about 130 gas consumers along 4,031 kilometers of gas pipelines.
If these are some of OQ Gas Networks’ facts, then it makes sense for everyone to subscribe given the excellent earnings assurances it offers, such as returns on the subscription shares, and given all of its accomplishments and skills.
It goes without saying that OQ Gas Networks has undergone a revolutionary shift as a result of its subscription and its conversion into a public shareholding company listed on the Muscat Stock Exchange. One of the objectives of the change sought by its owners, it is guaranteed that this will double its responsibilities and drive it towards achieving the best for its shareholders.
We are hopeful that the subscription to OQ Gas Networks Company will be a success, that everyone will profit from this chance to invest their money and diversify their sources of income, and that it will open up more opportunities for subscriptions to government assets as a step towards luring investments and accelerating the Sultanate of Oman's economic growth.
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