EFG Hermes said its investment banking division successfully completed advisory on the $748 million initial public offering (IPO) of OQ Gas Networks (OQGN), the exclusive operator of the gas transportation network in Oman. EFG Hermes acted as Joint Global Coordinator on the transaction.
OQGN offered a total of 49% of its total issued share capital equivalent to 2,122,005,720 shares at the top end of the range, 140 Baizas per share – implying a market capitalisation of $1.6 billion and marking the sultanate’s largest IPO ever.
The IPO was met with a robust OMR4.0 billion ($10.4 billion) demand for shares from local, regional, and international investors, with the total book covered approximately 13.9 times. The company began trading under the ticker ‘OQGN’.
Pivotal role
Karim Meleka, Managing Director at EFG Hermes’ Investment Banking Division, commented: “EFG Hermes played a pivotal role in facilitating the successful IPO of OQGN contributing to Oman’s drive to list state-owned institutions and enriching the stock market. Our second Omani listing this year following the listing of OQ’s oil and gas drilling unit Abraj Energy Services, the deal underscores our commitment to delivering exceptional advisory services in FEM, further solidifying our position as a leading investment bank franchise in the region.
“Our expertise, combined with the robust demand witnessed for OQGN's shares from local, regional, and international investors, reaffirms the appeal of GCC investments and the trust placed in EFG Hermes as a trusted partner in these markets. We look forward to continuing our growth and success in the region, building on this achievement and our strong legacy of advisory excellence.”
The transaction marks EFG Hermes’ seventh advisory role on an IPO this year. Most recently, EFG Hermes advised on the IPO of ADES Holding Company on the Saudi Exchange, as well as the successful IPOs of Adnoc L&S and Adnoc Gas Plc on the Abu Dhabi Securities Exchange (ADX), IPO of Lumi Rental Company on the Saudi Exchange; Abraj Energy Services on the MSX; and Al Ansari Financial Services PJSC on the Dubai Financial Market (DFM).--TradeArabia News Service
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