OQ Gas Networks SAOG (OQGN), a subsidiary of Oman's state energy firm OQ SAOC, experienced a 14% rise on its Muscat trading debut today. The initial public offering (IPO) accrued $749 million, marking it as Oman's largest IPO. The company sold around 2.1 billion shares, equivalent to a 49% stake, which attracted a record demand of $10.4 billion.
This strong investor interest in Gulf share sales was observed despite the ongoing Israel-Hamas conflict and a 7% increase in Brent crude oil prices since the attack on October 7. The Persian Gulf continues to display resilience amid global market volatility caused by war and rising interest rates, with successful IPOs like OQGN and ADES Holding Co., which saw a 30% increase on its Riyadh debut.
The IPO of OQGN is part of Oman's privatization program, which aims to bolster state revenues and expand its stock exchange. This recent IPO has surpassed the previous record held by Oman Telecommunications Co., which floated at $748 million.
The successful listing follows OQ's earlier $244 million listing of oil driller Abraj Energy Services which saw an 18% rise from its listing price. Notable anchor investors included Fluxys Belgium SA, Saudi Arabia’s Public Investment Fund, and the Qatar Investment Authority. The deal was coordinated globally by Bank Muscat SAOG, Bank of America Corp (NYSE:BAC)., and EFG Hermes.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.