OQ Exploration and Production (OQEP), Oman's largest pure-play oil and gas exploration company, is set to launch an initial public offering (IPO) and list its ordinary shares on the Muscat Stock Exchange.

 

The company plans to sell up to 25 per cent of its total issued share capital, with the company and the Selling Shareholder, OQ, having the right to amend the size at any time, said a statement.

 

A minimum 75 per cent shareholding will remain with OQ after the offering. HSBC, Natixis, OIB, and Sohar International have been appointed as joint global coordinators, with Sohar International as the issue manager.

 

The offering provides investors exposure to OQEP, a top three oil and gas producer and one of the largest holders of reserves in Oman.

 

OQEP has experienced significant growth, expanding its average daily production nearly 14 times since its inception in 2009.

 

OQEP benefits from Oman’s fundamental advantages, including (i) its strategic location in a prolific hydrocarbon province with direct access to global shipping routes and logistics hubs; (ii) its well-developed oil and gas sector; (iii) a stable and highly prospective oil and gas operating environment which has attracted many international investors; (iv) the Government of Oman’s encouragement of investment in gas-intensive industries to support economic diversification and hydrocarbon value optimisation; and (v) an established and competitive regulatory and fiscal framework for the hydrocarbon sector.

 

Ashraf Hamed Al Mamari, Group CEO of OQ, said: “Today marks a significant milestone in our journey towards enhancing the value of OQ’s portfolio through strategic divestments. The intention to float OQ Exploration and Production reflects our commitment to unlocking new opportunities for growth, both for the company and for the Sultanate of Oman. Together with our ultimate shareholders at the Oman Investment Authority, we continue to broaden the reach of OQ companies, offering an attractive and robust investment case to the global market. OQ Exploration and Production, with its leading position in maximising Oman's natural resources, underscores our focus on sustainable development and local value creation. By empowering local communities and supporting small and medium-sized enterprises, we not only maximise local value but also contribute to the long-term economic stability of Oman.”

 

Ahmed Al-Azkawi, OQEP Chief Executive Officer, added:  “We are pleased to announce OQEP’s intention to float on MSX. Since our inception in 2009, we have worked tirelessly to pursue growth opportunities and strengthen our market position. This milestone represents the success of all those years of hard work. Our enterprise core values of operational excellence and sustainability have allowed us to build the company we are now taking public. OQEP is a reliable partner for 13 reputable international companies owing to our significant growth trajectory, robust portfolio of assets, and record-breaking production of nearly 14 times higher since inception."

 

He added: "Our strategic goals, aligned with Oman’s Vision 2040, focus on monetising the country’s hydrocarbon resources while supporting the energy transition. Additionally, stimulating the local economy is central to our sustainability initiatives, which includes developing local talent and supporting our CSI projects to increase our contributions to In-Country Value. We continue to build on our success and invite investors to be part of this unique opportunity and successful journey.”

 

OTHER KEY DETAILS OF THE OFFERING

* All the shares being sold by the Selling Shareholder (OQ) are existing ordinary shares and the company will not receive any proceeds from the sale of the shares in the offering, all of which will be paid to the selling shareholder. The offering expenses will be paid by the selling shareholder.

 

* The Offering will be offered in two tranches to eligible investors in Oman and qualified institutional and other investors in a number of countries (the "Category I Investors") and retail investors in Oman ("Category II Investors"). It will be conducted in the manner approved by the FSA and will be carried out concurrently.

• Category I (Institutional Tranche) Offer represents 60% of the total Offering and will be made to eligible investors in Oman and qualified institutional and other investors in a number of countries, which is expected to be allocated on a pro-rata basis relative to an investor’s order size. 

• Category II (Retail Tranche) Offer represents 40% of the total Offering for retail investors in Oman. Retail investors in the Category II Offer will be assigned as either a large retail investor or a small retail investor depending on the size of their subscription amount. A portion of the Category II Offer will be made available to large retail investors and the remainder of the Category II Offer will be 

made available to small retail investors.

• If the aggregate demand in Category II is less than 40% of the Offer, then after full allocation to the Category II investors, the balance of the shares shall be made available to Category I investors, if there is oversubscription in Category I.-TradeArabia News Service

Bahrain-based Bank ABC (Arab Banking Corporation) has announced that its board has secured approval from its shareholders for distribution of $85.1 million as dividends for FY 2024. 

 

This is approximately 30% of the group’s annual profits attributed to the shareholders of the parent. This dividend per share stands at $2.75 cents, marking a 22% increase compared to the previous year. 

 

The announcement came during the Annual Ordinary General Meeting (AGM) held today (March 16) at its headquarters in Manama, Bahrain under the chairmanship of Saddek Omar El Kaber.

 

During the AGM, the shareholders approved the consolidated financial statements for the financial year ended December 31, 2024. Also they elected new members to the Group Board for the 15th term.

 

For FY 2024, the Bank ABC had reported a record net profit attributable to shareholders of the parent of $285 million, reflecting a significant growth of 21% year-on-year (YoY) - the highest in the Group’s history from continuing business operations. 

 

This remarkable performance was driven by strong core business growth, a stable funding base, and disciplined management of operating and credit costs, said the bank in its statement.

 

A key highlight of the AGM was the appointment and election of the new board of directors for its 15th term (2025-2028), as follows: 

 

The Central Bank of Libya appointees are Naji Mohamed Issa Belgasem; Amer Mohamed Karkar and Mohamed Hassadi, while Kuwait Investment Authority appointees are Abdulaziz Fahad Alhudaib, Edrees Ahmad.

 

The elected nominees by private sector are: Khalil Ibrahim Nooruddin; Dr. Marouane El Abassi; Dr. Ibrahim Eldanfour and Manaf Abdulaziz Al Hajiri.

 

Reflecting on this milestone year, El Kaber said: "This achievement underscores the strength of the bank’s strategy and the unwavering commitment of its management and employees."

 

"As the board welcomes its new members, the Group’s solid balance sheet, prudent governance, and risk management approach, alongside its accelerated digital transformation and sustainability agendas, will ensure that Bank ABC to continues its growth trajectory into 2025 and beyond," he stated.

 

Group CEO Sael Al Waary said: "Bank ABC has once again demonstrated resilience and excellence, delivering record-breaking results in 2024. This achievement is a testament to our relentless focus on innovation, digital transformation, and disciplined execution of our strategic priorities."

 

"As we look to the future, we remain committed to creating value for our shareholders, enhancing customer experiences, and driving sustainable growth. With a dynamic new Board and a dedicated leadership team, we are well-positioned to navigate evolving market dynamics and continue shaping the future of banking in the Mena region and beyond," he added.-TradeArabia News Service

The total bank credit granted to the public and private sectors in Saudi Arabia reached its highest level at SAR3,005.9 billion ($801.44 billion) by the end of January 2025, according to the monthly statistical bulletin issued by the Saudi Central Bank (SAMA) for January 2025.

 

This marks an annual growth of 15% and an increase of over SAR348.22 billion compared to the same period in 2024, when it stood at SAR2,621.72 billion, a Saudi Press Agency report said.

 

Meanwhile, the total bank credit recorded a monthly growth of 2% by the end of January 2025, increasing by approximately SAR50.39 billion compared to December 2024, when it stood at SAR2,955.55 billion.

 

The bank credit granted to the public and private sectors was distributed across more than 17 diverse economic activities, serving as a key driver in achieving comprehensive and sustainable economic growth and contributing to the goals of Saudi Vision 2030, it said.