OQ Gas Networks IPO garners RO 4 bn in proceeds, oversubscribed 14 times
Published: 03:10 PM,Oct 12,2023 | EDITED : 08:10 PM,Oct 13,2023
BUSINESS REPORTER
MUSCAT, Oct 12 The Capital Market Authority (CMA) has announced the approval of allocation of the shares of OQ Gas Networks (OQGN) based on the categories outlined in the company’s prospectus.
The issue was oversubscribed by about 14 times at RO 4 billion, against an overall offering size of RO 288.2 million.
This reflects the confidence of local and foreigner investors in the issuer and the Omani capital market in addition to the attractiveness of the national economy in general, the CMA said.
The results of subscription show that the amounts of bids collected from the subscription have multiplied by 6.1 times for the Individuals category and by 28.9 times for the Institutions category.
The CMA has considered all the available options to specify the proper mechanism for allocation in accordance with the methodology specified in the prospectus.
The approval of allocation results of the Individuals category is based on a policy observing the interest of all subscribed categories to strike balance and enhance confidence in IPOs.
In regards to the methodology of shares allocation for Institutions category, the CMA clarified that shares were allocated based on the standards and mechanisms approved by the issuer in the prospectus.
The allocation percentages are as follows: The CMA approved the allocation results for Individuals category on the basis of allotment of the minimum limit at 3,300 shares and allocation of 4.987 per cent for each subscriber from the remaining shares.
The value of the offering allocated for this category is about RO 80.2 million.
Allocation of 4.4773 per cent of the total subscribed amounts for Local Institutions proportionality.
The value of offering allocated for this category is RO 59.42 million.
The share of foreign companies in the total offering is RO 59.42 million.
The allocation methodology approved by the CMA ensured that all categories of investors were taken into account.
This contributes to broadening participation in public offerings and enhances the role taken by the capital market as one of the effective financing sources in the national economy.
This contributes to achieving the objectives of the National Programme for Financial Sustainability and Financial Sector Development hence achieving the priorities of Oman Vision 2040.
The CMA emphasises that huge turnout and confidence in IPOs demonstrates the importance of utilising this market to support the national economy.
The remaining phases will be completed based on the timetable included in the prospectus.
The surplus funds will be refunded on October 17 and the listing of the company in the MSX will be on October 24.
Meanwhile, OQ Gas Networks SAOG (under transformation) announced that, following the successful completion of the bookbuilding and public subscription process for its initial public offering, it has set the final offer price at Baiasa 140 per share.
Having received overwhelming demand from investors, the final offer price was set at the top of the price range by OQ in its capacity as the selling shareholder.
A total of around 2.1 billion ordinary shares, representing 49 per cent of OQGN’s issued share capital, were offered, which will generate approximately RO 288 million (around $750m) of gross proceeds for the selling shareholder upon settlement, making the OQGN IPO the largest ever IPO in Oman.
This includes commitments from anchor investors amounting to approximately RO 89 million (approx $230m).
Immediately following completion of the OQGN IPO, OQ will continue to own 51 per cent of OQGN’s share capital.
The offering saw strong investor demand and oversubscription for both the Category I offering and Category II offering.
Total demand for OQGN shares amounted to around RO 4 billion (approx $10 bn).
OQGN shares are expected to commence trading on the MSX on 24 October 2023, under the symbol “OQGN” and ISIN “OM0000009072”.
Upon listing, the Company will have a market capitalisation of RO 606 million (around $1.6 billion), which will make OQGN the third largest company on the MSX by market capitalisation.
MUSCAT, Oct 12 The Capital Market Authority (CMA) has announced the approval of allocation of the shares of OQ Gas Networks (OQGN) based on the categories outlined in the company’s prospectus.
The issue was oversubscribed by about 14 times at RO 4 billion, against an overall offering size of RO 288.2 million.
This reflects the confidence of local and foreigner investors in the issuer and the Omani capital market in addition to the attractiveness of the national economy in general, the CMA said.
The results of subscription show that the amounts of bids collected from the subscription have multiplied by 6.1 times for the Individuals category and by 28.9 times for the Institutions category.
The CMA has considered all the available options to specify the proper mechanism for allocation in accordance with the methodology specified in the prospectus.
The approval of allocation results of the Individuals category is based on a policy observing the interest of all subscribed categories to strike balance and enhance confidence in IPOs.
In regards to the methodology of shares allocation for Institutions category, the CMA clarified that shares were allocated based on the standards and mechanisms approved by the issuer in the prospectus.
The allocation percentages are as follows: The CMA approved the allocation results for Individuals category on the basis of allotment of the minimum limit at 3,300 shares and allocation of 4.987 per cent for each subscriber from the remaining shares.
The value of the offering allocated for this category is about RO 80.2 million.
Allocation of 4.4773 per cent of the total subscribed amounts for Local Institutions proportionality.
The value of offering allocated for this category is RO 59.42 million.
The share of foreign companies in the total offering is RO 59.42 million.
The allocation methodology approved by the CMA ensured that all categories of investors were taken into account.
This contributes to broadening participation in public offerings and enhances the role taken by the capital market as one of the effective financing sources in the national economy.
This contributes to achieving the objectives of the National Programme for Financial Sustainability and Financial Sector Development hence achieving the priorities of Oman Vision 2040.
The CMA emphasises that huge turnout and confidence in IPOs demonstrates the importance of utilising this market to support the national economy.
The remaining phases will be completed based on the timetable included in the prospectus.
The surplus funds will be refunded on October 17 and the listing of the company in the MSX will be on October 24.
Meanwhile, OQ Gas Networks SAOG (under transformation) announced that, following the successful completion of the bookbuilding and public subscription process for its initial public offering, it has set the final offer price at Baiasa 140 per share.
Having received overwhelming demand from investors, the final offer price was set at the top of the price range by OQ in its capacity as the selling shareholder.
A total of around 2.1 billion ordinary shares, representing 49 per cent of OQGN’s issued share capital, were offered, which will generate approximately RO 288 million (around $750m) of gross proceeds for the selling shareholder upon settlement, making the OQGN IPO the largest ever IPO in Oman.
This includes commitments from anchor investors amounting to approximately RO 89 million (approx $230m).
Immediately following completion of the OQGN IPO, OQ will continue to own 51 per cent of OQGN’s share capital.
The offering saw strong investor demand and oversubscription for both the Category I offering and Category II offering.
Total demand for OQGN shares amounted to around RO 4 billion (approx $10 bn).
OQGN shares are expected to commence trading on the MSX on 24 October 2023, under the symbol “OQGN” and ISIN “OM0000009072”.
Upon listing, the Company will have a market capitalisation of RO 606 million (around $1.6 billion), which will make OQGN the third largest company on the MSX by market capitalisation.