Overview
The OQ Exploration and Production (OQEP) Initial Public Offering (IPO), completed in 2024 on the Muscat Stock Exchange (MSX), was the largest equity capital markets transaction in Oman’s history — raising approximately OMR 975 million (approximately $2.5 billion) and transforming the scale and profile of Oman’s public capital markets.
Transaction Structure
- Issuer: OQ Exploration and Production (OQEP), the upstream oil and gas subsidiary of OQ Group
- Offer size: 25% of OQEP’s shares offered to public investors
- Retained stake: OQ Group retained 75% (majority government-owned entity)
- Exchange: Muscat Stock Exchange (MSX)
- Offer price: 820 baisa per share
- Total raised:
OMR 975 million ($2.5 billion) - Subscription: Oversubscribed — significant investor demand from institutional and retail investors
Significance
Capital markets: The OQEP IPO significantly increased the MSX’s total market capitalisation — previously approximately OMR 15-18 billion. Addition of a OMR 3+ billion company improved MSX’s depth and liquidity profile.
Private sector development: Demonstrated that Oman can successfully execute large-scale equity transactions, attracting both domestic retail investors and institutional investors.
Fiscal resource: Raised approximately $2.5 billion for government reinvestment — supporting the Oman Future Fund capitalisation and debt reduction.
Governance improvement: As a listed company, OQEP is subject to ongoing MSX disclosure requirements — improving transparency and corporate governance standards.
Privatisation template: Established a model (partial stake IPO while retaining majority control) for future state enterprise privatisations in Oman’s pipeline.
OQEP Business
OQEP’s upstream business operates oil and gas exploration and production blocks outside PDO’s Block 6 concession, including:
- Onshore blocks in Oman’s interior regions
- Offshore block interests
- International upstream investments
OQEP’s production, reserves, and reserve replacement are key metrics for investors monitoring the company’s value trajectory.