MUSCAT, Sep 27 :
In a remarkable display of investor enthusiasm, OQ Gas Networks (OQGN) has reported that its Category 1 offering, comprising 40% of the IPO's total size and exclusively allocated to institutional investors, has garnered overwhelming interest, surging to the maximum price of Bz 140 within the very first day of the book building process.
Following the enthusiastic response from institutional investors, the focus now shifts to the Category II subscription phase, which began on September 26, 2023 and will run until October 5, 2023.
Category II is exclusively open and reserved for individual investors and represents 30% of the total Offer size. Shares offered under this category are available at a discounted maximum price of Bzs 126 per Offer Share, providing a 10% discount on the maximum price of Bzs 140 per share. By exclusively reserving 30% of the total Offer size for individual investors and offering shares at a discounted price, OQGN says it aims to provide greater access to potential individual investors in the IPO.
OQGN, the owner and operator of Oman’s National Gas Transportation Network (NGTN), is offering up to 49 per cent of its total issued share capital for public subscription. The offer, covering a total of 2,122,005,720 existing shares, is expected to raise up to RO 297 million (equivalent to $771 million) at the top of the price range, valuing OQGN at up to RO 606 million (equivalent to $1,574 million).
Buoying investment interest ahead in the IPO was the announcement that three Anchor Investors - Saudi Omani Investment Company, a wholly owned entity of the Public Investment Fund, Falcon Investments, a subsidiary of Qatar Investment Authority, and Fluxys International - had irrevocably committed to subscribing to the offer at the top of the price range (Bzs 140 per share).
Based on a flurry of ‘buy’ recommendations from market analysts and stock brokers, retail investment in the IPO is anticipated to be similarly robust. The final price of the stock is due to be announced on October 12 with a listing on the Omani bourse planned for October 24.
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