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The Oman India Fertiliser Company (OMIFCO), which listed on the Muscat Stock Exchange (MSX) on Wednesday, surged nearly 20% in early trading even as most Gulf markets slipped amid escalating geopolitical tensions in the region.
The shares opened at 185 Omani baiza, 18.6% above the final offer price of 156 baiza ($0.40), reflecting strong investor demand for one of the Sultanate’s rare stock market listings and among the few IPOs seen in the region since the start of the US-Iran conflict.
The integrated producer of anhydrous ammonia and granular urea saw its shares rise to an intraday high of 192 baiza, up 23% from the offer price, before easing to 190 baiza ($0.49).
OMIFCO's debut comes amidst regional indexes feeling the weight of the military escalation. While Saudi Arabia's benchmark index eased 0.2%, Dubai's main share index declined 1%, and the Abu Dhabi index fell 0.7%.
OMIFCO, which floated 1.672 billion shares or 25% of its share capital, in a $678 million listing, had set the range between 146 baiza and 156 baiza per share, with a company valuation of up to 1.04 billion Omani rials ($2.7 billion).
Vijay Valecha, CIO, Century Financial called the debut “one of the biggest listings in the Middle East” since regional tensions erupted on February 28. “This listing seems to be highlighting the demand for the IPO, evident by the order book having an oversubscription rate of around 18 times, which is relatively higher than some of the recent and major Omani listings.”
According to Madhur Kakkar, Founder and CEO, Elevate Financial Services, with early figures indicating the stock trading on heavy volume of 210.85 million shares and a turnover of OMR 38.94 million, this “points to genuine demand and improving momentum, rather than just a first-day spike.”
“For Oman, it is a healthy sign for MSX depth and the privatisation pipeline and for the wider GCC, it shows investors remain selective but are still backing large industrial names with clear fundamentals and yield support,” Kakkar added.
Yet, as renewed tensions in the Middle East interrupted the gradual complacent market narrative after months of conflict, analysts stress investors are now being forced to reassess geopolitical risks after several weeks of pricing in a smooth path toward de-escalation.
“The IPO has come at a time of fragility in the region’s capital markets, affected by weakening peace talks between the US and Iran, causing the Strait of Hormuz to open and close consistently,” said Valecha, yet pointing out that Oman has also been one of the only countries in the region which has largely avoided any major attacks, while benefiting from trade routes that bypass the Strait.
“On top of that, Oman’s stock market has been among the most resilient Gulf markets since the outbreak of the conflict, with the MSM30 index falling about 15% at its peak drawdown, compared to a 22% fall in the DMFGI. With significant gains since 2025 and an expanding primary market with listings like OMIFCO, the Muscat exchange is increasingly unlocking additional foreign investment opportunities,” Valecha added.
OMIFCO was established in 1998 through a JV between the governments of Oman and India, with existing shareholders including the state-backed OQ SAOC (OQ), Indian Farmers Fertiliser Cooperative Limited (IFFCO) and Krishak Bharati Cooperative Limited (KRIBHCO),
(Reporting by Bindu Rai, editing by Brinda Darasha)
