MUSCAT: The Financial Services Authority (FSA) has announced the approval of the prospectus of OQ Exploration and Production (under conversion to a public joint stock company), which offers no less than 2 billion shares constituting 25 per cent of the company’s capital. The offering is the largest in the history of the Omani capital market by volume and market value of the company.
OQ Exploration and Production is part of OQ Group which is owned by the Oman Investment Authority (OIA). The offering is in line with the policy of Oman Investment Authority to divest some government assets in translation of the goals of Oman Vision 2040 that aim to attract national and foreign investments and support the diversification and expansion of the shareholder base. The offer allows investors to invest in one of the top companies specialized in the exploration and production of oil and gas in the Sultanate of Oman.
The prospectus shows that the subscription period will be for two weeks from September 30 to October 10, 2024 for Category I investors, while the subscription period for Category II investor – representing individuals - will close on October 9.
The prospectus shows that the number of offered shares are divided into three main categories namely the institutions (first category), individuals (second category and large investors. As to the offer price the prospectus shows that the first category which is the institutions their price band will be determined through book building process in a band of 370 to 390 Baisas per share. The share price for Omani individuals will be 351 Baisas based on the higher price at 390 Baisas per share minus 10% to incentivize the Omanis to take part in the issuance and benefit from the investment opportunities. The price for non-Omanis will be 390 Baisas.
The prospectus points out that the share of the first category i.e. the institutions is 40% of the total offering divided equally between local institutions and regional and international institutions. The minimum l limit for subscription for this category will be 100,000 shares without maximum limit. As for the individuals in the second category in the prospectus they take 40 per cent of the total offering divided equally between large and small investors. The minimum limit for large investors will be 28,600 shares with no maximum limit. The minimum limit for small investors will be 500 shares and the maximum 28,500 shares.
Importantly, 20 per cent of the offer volume will be allocated for anchor investors. FSA emphasizes that the prospectus is the main reference on the information related to OQ Exploration and Production which is prepared by the issue manager in accordance with the legal requirements to assist the investor to take informed investment decision away from the roamers and news from anonymous sources.
Hence, careful reading of the prospectus is the sound step to have adequate knowledge of the company, its performance and historical financial position. The prospectus also shows the current opportunities of the company and the sector and the challenges including future risks. It also shows the contracts of the company and their periods beside the prospects of dividends distribution in the near future and the company’s future policy in dividends distribution.
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