PHOTO
Oman's OQ Gas Network (OQ) on Monday announced its intention to float 49% of share capital of OQ Gas Networks S.A.O.G. (OQGN) on the Muscat Stock Exchange.
In a statement, the company said the offering, which has been certified shariah-compliant, is set to open for subscription to all categories of investors in September. It expects to admit shares for trading in October 2023.
OQ directly and indirectly through Oman Energy Trading Company Ltd. (OECTL), and Oman Oil Services Limited together with OQ and OETCL, constitute the selling shareholders.
The selling shareholders retain the right to amend the size of the offering at any time before the end of the subscription period, the company said.
Immediately following the offering, OQ will continue to hold a minimum of 51% shareholding.
Category I investors, which include institutional investors, will be offered 70% of the total offering. Of this, 30% have been reserved for anchor investors, as yet unnamed.
Category II investors, which include retail investors, are eligible to subscribe to 30% of the total offering.
Bank Muscat, BofA Securities and EFG-Hermes UAE Limited (acting in conjunction with EFG Hermes UAE LLC) have been appointed as joint global coordinators. Bank Muscat has been named as the issue manager.
For the six months ended 30 June 2023, OQGN earned income of 85 million Omani rial ($221 million). In 2022, it earned an income of OMR 160.4 million.
Dividend programme
OQGN expects to pay the first dividend distribution of OMR 33 million for the first nine months of 2023 and a second dividend distribution of OMR 11 million for the last three months of 2023, it said.
For 2024, the company expects to pay a dividend which will be the higher of 90% of its profit for the year ending 31 December 2024 or a 5% increase on the aggregate dividends paid for 2023.
For 2025, OQGN expects to pay a dividend, which will be the higher of 90% of the profit for the year ending 31 December 2025 or a 5% increase on the dividends paid for 2024.
OQ Gas Network is the exclusive owner and operator of Oman's gas transportation system.
(Reporting by Brinda Darasha; editing by Seban Scaria)
