MUSCAT: The Financial Services Authority (FSA) has approved the share allocation ratio for OQ Exploration and Production Company following a highly successful subscription period. The offering was oversubscribed by 2.4 times, with total subscriptions reaching approximately RO 1.814 billion, based on a share price of 390 Baisa.
Investors submitted bids for around 4.82 billion shares, far exceeding the 2 billion shares offered to the public. This overwhelming response highlights the strong confidence of both local and foreign investors in OQ Exploration and the broader Omani capital market. It also signals the continuing attractiveness of Oman’s economy as a stable and growing investment destination.
The subscription process revealed robust participation across different investor categories. Large individual investors oversubscribed by three times, contributing RO 432 million, while small investors collectively contributed RO 179 million, oversubscribing by 1.3 times. Institutional investors were particularly strong, with RO 1.047 billion committed and their offered shares also oversubscribed by three times.
The FSA disclosed that the allocation for institutional investors stood at 29.77% of their subscribed shares, while large individual investors received 32.61%. Small individual investors were guaranteed a minimum of 8,000 shares, with 23.18% of the remaining shares allocated to them.
Abdullah bin Salem al Salmi, Executive President of the FSA, emphasised the importance of ensuring broad-based participation in the IPO. "We designed the allocation methodology to accommodate all investor segments, thereby widening the participation base," he said. He added that this approach underscores the pivotal role of the capital market in Oman’s national economy, providing critical funding for key projects.
Al Salmi also highlighted that the strong interest in the offering reinforces the confidence investors place in Oman’s initial public offering (IPO) market. This success paves the way for future public offerings that can further fuel the economy by supporting a diverse range of development projects across the Sultanate. — ONA
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