Oman wealth fund to launch IPOs in divestment push

Alamy via Reuters

The Oman Investment Authority has framed a new five-year divestment plan, which includes initial public offerings in key sectors.

Companies in the energy, services and logistics sectors will be floated under the 2024-28 strategy, the OIA said in a post on X.

In addition to the IPOs, the sovereign wealth fund will launch private placements, seeking strategic investors to support the agriculture, aquaculture and mining sectors.

---

---

Specific details about the companies involved were not disclosed.

This week, OQ, a state energy company owned by the OIA, announced plans to sell up to a quarter of its exploration and production arm, OQEP, through an IPO.

The fund launched its divestment strategy in 2022 to meet national strategic objectives, which include attracting foreign investment, expanding the Muscat Stock Exchange, deleveraging and repaying debts and reinvesting revenues from divested mature assets.

The strategy generated more than OR1 billion ($2.6 billion) from 12 divestments over 2022 and 2023, including three IPOs — Pearl REIF, Abraj Energy Services, and OQGN — and nine private placements across various sectors.

• Oman wealth fund begins merger of food units
• Rail link to UAE will supercharge Oman’s port city of Sohar
• Oman sovereign fund’s assets rise 12% to $50bn in 2023

The part-privatisations further Oman’s ambitions to be classified as an emerging market. To be eligible for the MSCI emerging market index, a country must have at least three stocks that meet certain size and stock liquidity thresholds.

In July, a report by Kuwait’s Markaz said IPOs in the GCC raised $3.6 billion through 23 offerings in the first half of 2024, down from $5.3 billion raised through 21 offerings a year ago.