Salalah: OQ Base Industries (Salalah Free Zone) SAOG (under transformation) has announced its plans to offer up to 49% of its shares in an initial public offering (IPO) and list its ordinary shares on the Muscat Stock Exchange (MSX). The initiative is aimed at diversifying the company’s shareholder base, expanding its network of relationships, and enhancing its position among key stakeholders, while providing liquidity opportunities for shareholders.
According to Oman News Agency, the subscription for first and second category investors is expected to commence in November 2024, pending the necessary approvals from the Financial Services Authority. The shares will subsequently be listed on the Muscat Stock Exchange in December 2024. This offering presents a significant opportunity to invest in an integrated company that operates three advanced production plants producing methanol, ammonia, and LPG products, with a combined production capacity of 1.8 Mtpa.
OQ Base Industries is strategically located in the Sa
lalah Free Zone, a tax-exempt area near the Port of Salalah, the largest port in the Sultanate of Oman. This location provides the company a competitive edge in accessing markets in the Middle East, North Africa, Europe, and Asia. The offering is in compliance with Islamic Sharia, as confirmed by the Sharia Supervisory Board of Bank Dhofar Islamic, which serves as the Sharia advisor for the issuance.
Ashraf Hamad Al Maamari, CEO of OQ Group, expressed satisfaction with the announcement, highlighting the success of previous IPOs within the group and their reception by investors. Eng. Ali Mohammed Al Lawati, Chairman of OQ Base Industries, described the offering as a pivotal moment in the company’s growth journey. Eng. Khalid Al Asmi, CEO of OQBI, emphasized the strategic importance of this occasion, noting the potential for growth in the global market.
OQ Base Industries has adopted a semi-annual dividend policy, aiming to pay dividends post-offering. The company plans to distribute RO 32.7 million (approxim
ately USD 85 million) in dividends for the fiscal year 2024, with the first dividend payment scheduled for January 2025 and the second for April 2025. Over the next fiscal years, the company intends to increase dividends by at least 5% annually and expects to distribute any excess cash not allocated for corporate purposes or growth investments.
The company’s ability to pay dividends is contingent on several factors, including market conditions, distributable reserves, capital expenditures, and future cash requirements, along with necessary approvals.