Oman Investment Authority (OIA), the investment arm of the Sultanate of Oman, has launched the Initial Public Offering (IPO) for 25 percent of the shares of OQ Exploration & Production, a subsidiary of OQ Group fully owned by OIA.
This IPO seeks to emerge as the largest in Oman’s history on the Muscat Stock Exchange. Of the total shares on offer, 60 percent will be allocated to institutional investors in Oman and international, while 40 percent will be reserved to individual investors.
The Shariah-compliant IPO comes with the framework of OIA’s comprehensive divestment strategy which was revealed in mid-2022. Between 2022 and 2023, OIA has generated over $2.5 billion by divesting from 12 investments.
These divestments consisted of nine private placements in various sectors and three IPOs on the Muscat Stock Exchange, which includes The Pearl REIF, Abraj Energy Services, and OQ Gas Networks, all of which resulted in substantial oversubscription, highlighting strong investor confidence.
OIA focuses on divesting select subsidiaries and converting them into public joint-stock companies or selling equity in these subsidiaries directly to strategic investors. This strategy aims to enhance Oman’s economy and revitalize the Muscat Stock Exchange, with an emphasis on achieving ‘emerging market status’.
By listing government-owned assets publicly, OIA strives to improve governance, transparency, and adoption of global best practices. This policy plays crucial role in Oman’s economic diversification efforts and aims to empower the private sector to drive economic growth. Additionally, it unlocks profitable investment opportunities for citizens and residents while attracting top-tier foreign investments.
OIA has updated its divestment strategy for the next five years, covering 2025 to 2029. To ensure seamless management of divestment operations, the Authority has also established steering committees within its subsidiaries.
The plan consists of approximately 30 investments that will be divested either through public offerings in sectors such as energy, logistics, utilities, and infrastructure or through direct sales to strategic investors in sectors including aquaculture, agriculture, and mining.
With a global footprint in more than 30 countries, OIA aims to remain at the forefront of the rapidly-evolving global economic landscape to enhance Oman’s national economy and elevate the country’s global competitiveness.
Through forward-thinking economic policies, OIA is opening new investment opportunities in line with Oman’s Vision 2040, which aims to diversify economy, attract foreign direct investments, and promote partnerships with local enterprises to drive sustainable growth and economic prosperity for the Sultanate of Oman.
