Oman's OQ Gas Networks sets price range in latest Gulf IPO - Reuters

Oman's OQ Gas Networks sets price range in latest Gulf IPO | Reuters

Oman's OQ Gas Networks sets price range in latest Gulf IPO

DUBAI, Sept 18 (Reuters) - Oman's OQ Gas Networks (OQGN), the pipeline business of state oil giant OQ, said on Monday it had set the offer range for its initial public offering (IPO) and could raise up to 297 million rials ($772 million) if priced at the top end of the range.

In what could be Oman's largest IPO in almost two decades, OQGN said in a statement it plans to float about 2.12 billion shares, equivalent to up to 49% of its share capital and could have a total valuation of 606 million rials.

Oman is following its neighbours Abu Dhabi and Saudi Arabia in looking to sell stakes in its energy assets, capitalising on a rebound in crude oil prices to attract foreign investors.

As the exclusive operator of Oman's gas transport system, OQGN supplies natural gas to power plants, free zones, industrial clusters, LNG complexes and other customers.

OQGN's statement said it had indicated a range of between 131 and 140 Omani baisas per share, equating to 0.131 and 0.140 rials ($0.34-$0.36), to institutional investors and 126 baisas per share for retail.

The expected proceeds and valuation are slightly above earlier Reuters calculations as the retail discount is discretionary and is not factored into the official figures.

"We think that the IPO price seems affordable to the individual investors, not only the institutional," said Mazen Salhab, chief market strategist, MENA, at BDSwiss.

Three anchor investors have already committed to taking 10% each of the offering at the top end of the range.

These are Saudi Omani Investment Company, a unit fully-owned by Saudi Arabia's Public Investment Fund, Falcon Investments, a subsidiary of the Qatar Investment Authority, and Fluxys International, the OQGN statement said.

OQ's oil drilling business, Abraj Energy Services, raised $244 million with the sale of a 49% stake last March.

The IPO subscription period is expected to begin later this month, with shares expected to begin trading on the Muscat stock exchange on or around Oct. 24.

($1 = 0.3846 Omani rials)

Reporting by Rachna Uppal and Yousef Saba; Additional reporting by Shamsuddin Mohd in Bengaluru Editing by David Goodman and Alexander Smith

Our Standards: The Thomson Reuters Trust Principles.

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