MUSCAT: BankDhofar has achieved a significant milestone with its skillful execution of a successfully subscribed Initial Public Offering (IPO) for OQ Base Industries (OQBI), marking its debut as an Issue Manager. The accomplishment underscores the bank’s readiness to play a pivotal role in Oman’s dynamic and evolving capital market.

OQBI, Oman’s sole integrated producer of methanol, ammonia, and LPG, celebrated its listing on the Muscat Stock Exchange on 15th December 2024. The IPO saw 1.69 billion ordinary shares, equivalent to 49% of the company’s issued share capital, offered to institutional and retail investors. The offering was oversubscribed 2.1 times, with demand reaching an impressive OMR 387 million, reflecting strong market confidence.

“Our goal is to evolve into a comprehensive solutions provider for our diverse client base,” commented Mr. K. Gopakumar, Acting CEO - Bank Dhofar. “With the Muscat Stock Exchange (MSX) poised for growth and multiple IPOs anticipated in 2025, BankDhofar is well-positioned to play a transformative role in this burgeoning market,” he further added.

In its maiden role as Issue Manager, BankDhofar showcased exceptional professionalism and expertise, ensuring a seamless and impactful IPO experience. By leveraging its multidisciplinary capabilities in corporate finance advisory, equity structuring and pricing, regulatory compliance, and due diligence, the bank effectively articulated OQBI’s value proposition to the market.

Notable was the contribution of the bank’s Corporate Finance Advisory Business Unit, a team with a robust blend of local and international talent. Supplemented by its overall institutional strengths, BankDhofar executed this mandate with outstanding results, cementing its reputation as a trusted partner for capital market transactions.

Beyond its role as Issue Manager, BankDhofar played a comprehensive part in the IPO process. It acted as Joint Global Coordinator alongside two prominent international banks, ensuring smooth transaction execution and management. The bank also served as Collection Agent and facilitated coordination with the Islamic Sharia Supervisory Board to secure a fatwa on the IPO’s sharia-compliant nature, enabling wider participation from Islamic investors. Additionally, the production of a pre-IPO research report provided valuable insights to the market, empowering investors with early information to guide their decisions.

A defining feature of BankDhofar’s approach was its proactive engagement with stakeholders. The Bank noted the overwhelmingly positive feedback from the investor community, who appreciated the depth of interaction and the unprecedented access to OQBI officials. Analysts, too, lauded the quality of the preparatory engagements, which underscored the professionalism and thoroughness of BankDhofar’s execution.

Building on this success, BankDhofar is setting its sights on expanding its presence in Oman’s capital market. The bank aims to diversify its service offerings to include IPOs, mergers and acquisitions, and other capital-raising opportunities.