(Bloomberg) -- Omani energy firm OQ SAOC is seeking to raise as much as 297 million rials ($771 million) from the initial public offering of its gas pipelines unit, in what’s set to be the country’s biggest listing on record.
OQ set the price range for the IPO of OQ Gas Networks SAOG at 131 baisas to 140 baisas per share, according to the prospectus. Retail investors will pay a maximum of 126 baisas per share, representing a 10% discount on the top-end price. The state-run firm and two of its subsidiaries are selling 2.12 billion shares, or a 49% stake, in OQGN, valuing it at as much as 606 million rials.
Fluxys Belgium SA, Saudi Arabia’s Public Investment Fund and the Qatar Investment Authority are each buying 10% of the IPO as anchor investors, the prospectus shows. The institutional investor tranche represents 40% of the deal while the retail portion accounts for 30%.
The bookbuilding period will run from Sept. 26 until Oct. 9 for institutional investors, while the retail offer will close on Oct. 5. The final price is due to be announced on Oct. 12 with shares set to start trading on Oct. 24.
OQGN is set to be the second IPO in Oman’s privatization program that’s aimed at boosting state coffers and expanding its bourse. Similar listing drives in Saudi Arabia and the United Arab Emirates have raised billions of dollars over the last couple of years.
OQ floated its oil-drilling unit Abraj Energy Services SAOG in March, raising $244 million in what was Oman’s biggest listing in over a decade. Its shares have risen almost 18% since. Oman Telecommunications Co SAOG’s $748 million IPO in 2005 is currently the country’s largest listing, data compiled by Bloomberg show.
OQGN holds a natural monopoly over the essential gas transportation infrastructure in Oman and has about 4,031 km (2,505 miles) of gas pipelines. Bank Muscat SAOG, Bank of America Corp., and EFG Hermes have been appointed joint global coordinators on OQGN’s IPO.
(Updates with retail price range and OQGN valuation in 2nd paragraph)
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