MUSCAT: OQ Gas Networks Co (OQGN), the exclusive owner and operator of the natural gas transportation network in the Sultanate of Oman, has announced a stock split – a precursor to a keenly anticipated public offering and eventual listing by the company, wholly owned by OQ Group.
The stock split, disclosed by the MSX on Thursday, is effective August 22, 2023. This means that for every 10 shares of OQ Gas Networks stock that a shareholder owns, they will receive an additional 9 shares. The total number of shares outstanding will increase from 433,062,392 to 4,330,623,920.
According to market experts, the stock split is intended to make the shares more affordable for investors and to increase liquidity. A lower share price can make it easier for investors to buy and sell shares, which can increase trading volume and make the stock more liquid.
The stock split is also seen as a positive signal by the market, as it suggests that the company is confident in its future prospects. A company that is confident in its future prospects is more likely to be successful, which can lead to higher share prices in the long run.
Amor Ahmed al Maashani, Head of Brokerage, Ahli Bank, commented: “OQ Gas Networks announced the split of its share price ahead of the company's expected listing on the Muscat Stock Exchange MSX next October. In this way, the company can offer its IPO at an affordable price to investors of all categories.”
He further added: “The success of Oman Investment Authority’s (OIA) recent listed company Abraj Energy Services SAOG will reflect positively on the coming IPO, as many investors are waiting for the announcement of the detailed prospectus. Also the possible discount rate for retail investors and the discount to fair price offered to the rest of categories should result in many times of oversubscription.” “With such size of IPO, this also should reflect on the average daily trading volume on the Muscat Stock Exchange, as well as the amount of capital that will be available for direct investment in the Sultanate of Oman,” Al Maashani stated
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