MUSCAT: The Muscat Stock Exchange (MSX) is set to list shares of OQ Exploration and Production Company this Monday, Oct 28, marking a pivotal event in Oman’s financial landscape. Following an immensely successful public subscription, OQ’s IPO has set records as the largest offering in Oman’s history, with the company releasing 25% of its capital — equivalent to two billion shares. From September 30 to October 10, investors showed overwhelming interest, with demand reaching RO 1.8 billion and oversubscription hitting 2.4 times.
Azzan bin Mohammed Redha al Abdulatif, Vice President of Acquisitions and Exit Projects at OQ Group, described the listing as a historic milestone for Oman, noting it is the first in the energy sector to focus on exploration and production. This move aligns with the Oman Investment Authority's strategy under Oman Vision 2040 to partially divest state-owned assets to drive economic diversification and market vitality.
Mustafa bin Ahmed Salman, Chairman and CEO of United Securities Company, highlighted the positive impact of OQ’s listing on MSX. He noted that such a large-scale offering strengthens Oman’s bid to be included in the emerging markets index. Salman's assessment suggests that the company’s market value could exceed RO 3 billion upon its debut, boosting confidence in MSX and attracting further foreign investments. He also pointed out the expected quarterly dividends, with OQ planning to distribute 90% of its available cash every quarter, an attractive incentive for both local and foreign investors.
Despite the excitement surrounding the listing, some analysts caution that individual investors might quickly sell off shares due to concerns over short-term fluctuations.
Salman, however, remains optimistic, suggesting that the high demand and anticipated dividend yield — over 8% return per share — will likely stabilize the stock in the medium term. He recommended that small investors increase their holdings in OQ rather than selling, emphasizing the benefits of consistent returns and long-term growth.
United Securities has also been actively promoting OQ’s IPO to foreign investors, with the aim of solidifying MSX’s reputation as a regional leader. With the listing expected to drive economic diversity and growth, Oman’s stock exchange is on the cusp of transformative growth, potentially becoming a central investment hub in the Gulf. — ONA
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