EFG Hermes, the leading investment bank franchise in Frontier and Emerging Markets (FEM), announced today that it has successfully advised on the $748m initial public offering (IPO) of OQ Gas Networks (OQGN), the sole operator of the gas transportation network in Oman, on the Muscat Stock Exchange (MSX). EFG Hermes acted as Joint Global Coordinator for the transaction.
OQGN offered 49% of its total issued share capital, equivalent to 2,122,005,720 shares, at the top end of the range, 140 Baizas per share. This implies a market capitalization of $1.6bn and makes it the largest IPO in Oman’s history. The Offering consisted of a Category I offer for institutional investors representing 40% of the total offer size, a sale to anchor investors representing 30% of the total offer size, and a discounted Category II retail offer representing the remaining 30%.
Saudi Omani Investment Company, a wholly owned entity of the Public Investment Fund of Saudi Arabia, Falcon Investments LLC, a subsidiary of Qatar Investment Authority, and Fluxys International SA/NV each secured a 10% share of the IPO as anchor investors.
The IPO attracted a strong OMR 4.0bn ($10.4bn) demand for shares from local, regional, and international investors, with the total book covered approximately 13.9 times. The company started trading today under the ticker “OQGN”.
Karim Meleka, Managing Director at EFG Hermes’ Investment Banking Division, said: “We are proud to have played a key role in facilitating the successful IPO of OQGN – Oman’s biggest IPO ever – contributing to the country’s efforts to list state-owned enterprises and diversify its economy. This is our second Omani listing this year after Abraj Energy Services, the oil and gas drilling unit of OQ, demonstrating our commitment to delivering exceptional advisory services in FEM and strengthening our position as a leading investment bank franchise in the region. Our expertise, coupled with the robust demand for OQGN’s shares from local, regional, and international investors, confirms the attractiveness of GCC investments and the trust placed in EFG Hermes as a reliable partner in these markets. We look forward to continuing our growth and success in the region, building on this achievement and our long-standing track record of advisory excellence.”
OQGN’s public listing on MSX has enabled domestic and international investors to invest in Oman and participate in its Vision 2040, the long-term national development plan that aims to diversify its economy and enrich its dynamic stock market.
The transaction marks EFG Hermes’ seventh advisory role on an IPO this year. Most recently, EFG Hermes advised on the IPOs of ADES Holding Company on the Saudi Exchange; ADNOC L&S and ADNOC Gas Plc on the Abu Dhabi Securities Exchange (ADX); Lumi Rental Company on the Saudi Exchange; Abraj Energy Services on the MSX; and Al Ansari Financial Services PJSC on the Dubai Financial Market (DFM).
