The Financial Services Authority announces the approval of the prospectus of OQ Basic Industries “OQBI” Under conversion into a public joint stock company through the offering of approximately 1.7 billion shares for public subscription, with the offering size representing 49% of the company’s capital at a value that may exceed RO 180 million. The prospectus states that the share specified for the individual’s category is 40% of the total offering at a price of 111 Baizas per share.

The prospectus also states that the subscription period will commence on November 24 for five days for the individuals category and eight days for the institutions category, which will subscribe at a price band ranging from 106 Baizas to 111 Baizas.

OQ Basic Industries is one of the OQ Group companies, an affiliate of   Oman Investment Authority (OIA). The offering of shares for subscription comes as part of OIA’s divestment of some government assets and a translation of the objectives of “Oman Vision 2040” aimed at attracting national and foreign investments.

The offering also comes as part of the diversification and expansion of shareholders’ base. The offering will provide investors with the opportunity to invest in one of the most prominent companies in the Sultanate of Oman that specializes in providing methanol, ammonia and liquefied petroleum gas products, which include propane, butane, condensates and liquefied petroleum gas (cooking gas).

The prospectus states that the number of shares offered for subscription is divided into three main categories; the institutions category (first category), the individuals category (second category) and the major investors category. Subscriptions for OQBI shares for the first category will begin on Sunday, November 24 until Sunday, December 1, 2024.

The subscription price for this category will be determined based on book building according to a price band ranging from 106 Baizas to 111 Baizas per share, while the subscription for the second category will be during the period from Sunday, November 24 until Thursday, 28 November for a period of five days, provided that The subscription price for this category will be 111 Baizas per share.

The prospectus indicates that the share of the first category, which is represented by institutions is 30% of the total offering divided equally between local, regional and international institutions. The minimum subscription for this category will be 200 thousand shares without specifying the maximum subscription limit. As for the category of individuals referred to as the second category in the prospectus, 40% of the total offering will be allocated to it.

The minimum subscription limit for major investors will be 90,100 shares in multiples of 100 shares without setting an upper limit. As for the small investors category, the minimum will be 1,000 shares and the maximum 90,000 shares.

 30% of the offering was allocated to major investors category at 508,545,156 shares with a value exceeding RO 56.45 million. Eligible investors from inside and outside the Sultanate of Oman participated in this category as stated in the prospectus.

FSA emphasizes that the prospectus is the main reference on the information related to OQBI which is prepared by the issue manager in accordance with the legal requirements to assist the investor to take informed investment decision away from the roamers and news from anonymous sources. Hence, careful reading of the prospectus is the sound step to have adequate knowledge of the company, its performance and historical financial position. The prospectus also shows the current opportunities of the company and the sector and the challenges including future risks. It also shows the contracts of the company and their periods beside the prospects of dividends distribution in the near future and the company’s future policy in dividends distribution.

FSA calls on the public to follow up the publicity about the prospectus organized by the issuer of the security namely OQBI and the issue manager to find out about the details of the prospectus and key information required to take informed investment decision.