Muscat: OQ Exploration and Production Company’s initial public offering (IPO) is making waves, setting a record as the largest offering in Oman and across the Arabian Gulf for 2024. This pivotal move signifies a qualitative leap for the Muscat Stock Exchange and the broader Omani economy, capturing the attention of both local and international investors.

Economic analysts highlight the overwhelming response to the IPO, noting that the institutional subscription was fully covered, a strong indicator of investor confidence. Dr. Al Moatasem bin Musabah Al Mutairi, Head of Investment at Bank Sohar International, the issue manager, revealed that 800 million shares—40% of the total offering—are allocated to individual investors. The allocation is split evenly between large individual investors, applying for 28,600 shares or more, and small individual investors, subscribing for 500 to 28,500 shares.

The allocation mechanism is designed to be fair and proportional, with remaining shares rolling over to institutional investors if demand from individuals falls short.

Abdul Wahid bin Mohammed Al Murshidi, Head of Islamic Banking at Bank Sohar, noted the strong interest from day one, with institutional coverage exceeding 100% within the first two days of the offering. This level of demand, coupled with the backing of global investment companies, is considered a watershed moment for the Muscat Stock Exchange.

Mustafa bin Ahmed Salman, Chairman and CEO of United Securities, emphasized that the OQ Exploration and Production IPO stands out among current offerings, drawing substantial interest from both institutions and individuals. Analysts predict a price surge of up to 20% for Omani investors, reflecting the offering’s attractiveness.

Louay Bataineh, CEO of Ominvest International Holding Company, underscored the advantages for Omani citizens, highlighting the attractive pricing and the company’s commitment to profit distribution over the next three years, with expected returns between 7.5% and 9.3%.