Initial Public Offering

Overview of IPO

OQ Base Industries (SFZ) SAOG (under transformation) (“OQBI” or the “Company”) is Oman’s only wholly state-owned and integrated producer of methanol, ammonia, and LPG products. As a wholly owned subsidiary of OQ SAOC (“OQ”), the Sultanate of Oman’s flagship energy company, OQBI represents one of its core assets.

The Selling Shareholders expect to sell up to 49% of the total issued share capital of OQBI under the initial public offering (the “Offering”), with the Company and the Selling Shareholders retaining the right to amend the size of the Offering at any time before the end of the subscription period at their sole discretion, subject to applicable laws and the approval of the Financial Services Authority (the “FSA”). Immediately following the Offering, a minimum of 51% shareholding will continue to be held by OQ.

Through the Offering, OQ is providing an opportunity for Omani and international investors to participate in Oman’s capital markets and share in the wealth of OQBI’s attractive and balanced asset portfolio.
The Offering will boost Oman’s economic growth, as well as provide further opportunities for development and innovation in the chemicals sector within the Sultanate of Oman.

This webpage contains information about OQBI, its planned listing on the MSX, and how you can subscribe to the Offering.

Investment highlights

  • Robust industry environment for methanol, ammonia, and LPG products, with strong demand growth across a broad range of end markets.
  • Competitive cost position enabled by fully integrated, state-of-the-art assets with high reliability, and advantaged long-term gas supply contracts.
  • Attractive geographic location and access to global logistics network, scale and expertise of the OQ trading platform.
  • Tangible future growth pathways including a debottlenecking project to increase methanol capacity by 50%.
  • Optimally positioned to capitalise on the transition to clean methanol and ammonia to serve emerging clean fuels demand.
  • Attractive dividend capacity supported by high margins and strong cashflow generation across commodity cycles.

OQBi at a Glance

OQ Base Industries

Strong ESG track record & Commitment

Salalah Free Zone

Strategic geographic location

Co-located & fully integrated Production facilities

Chemical production assets in Oman:
Methanol plant (1,095 ktpa(6))
Ammonia plant (365 ktpa(6))
LPG products plant (356 ktpa(6))

Combined nameplate production capacity

June 2024 Methanol LTM revenue

June 2024 Ammonia LTM revenue

June 2024 LPG LTM revenue

H1 2024 Hours without lost time incident

%

H1 2024 Methanol utilisation rates(2)

%

H1 2024 Ammonia utilisation rates(2)

%

H1 2024 LPG utilisation rates(2)

LTM June 2024 Adj. EBITDA(3)

LTM June 2024 FCF(4)

Workforce as of June 2024

%

Omanisation as of June 2024

%

Methanol export(5)

%

LPG products export(5)

Methanol Plant Nameplate production capacity commissioned in 2010

Ammonia Plant Nameplate production capacity commissioned in 2022

LPG Plant Nameplate production capacity commissioned in 2021

Key:

  1. Based on combined financial statements.
  2. Utilisation rate defined as actual production achieved by that plant in a given period as a percentage of its nameplate capacity.
  3. EBITDA defined as earnings before net interest (aggregate of interest income and expenses), taxes, depreciation and amortisation.
  4. FCF defined as net cash flow from operating activities minus capital expenditures.
  5. Exported via OQ Trading, OQ Group’s global trading business.
  6. Nameplate Production Capacity

OQ Group

OQBI is supported by OQ Group, a global and fully integrated energy player.

Wholly owned by the Omani government through the Oman Investment Authority

Fully integrated across the entire energy value chain.

Key export partner of crude oil and refined products to high-growth markets.

CEO Message

Message from the OQBI CEO

The Initial Public Offering (IPO) of OQ Base Industries (OQBI) shares on the Muscat Stock Exchange which comprises the sale of up to 49% of the share capital of OQBI by OQ SAOC (OQ or OQ Group) marks a transformative step in our journey towards growth and excellence. This strategic milestone both aligns with the broader objectives of the OQ Group and supports the Oman Investment Authority’s (OIA) vision of optimising its investment portfolio and attracting domestic and international investment.

At OQBI, we are dedicated to delivering high-quality, essential-base chemicals that power industries and improve lives around the world. This IPO reflects our commitment to operational excellence, sustainable development, and innovation. Our advanced facilities in the Salalah Free Zone, combined with a talented workforce, ensure that we meet the growing needs of our customers while contributing to economic growth, both locally and globally.

As a key player within Oman’s industrial landscape, OQBI is deeply aligned with the Sultanate’s Vision 2040, contributing to economic diversification and the development of a sustainable, knowledge-based economy. The success of previous IPOs within the OQ Group underscores the strong investor confidence in our strategic direction and our ability to deliver long-term value.

Our strategic location and integrated operations enable us to capitalise on global market opportunities, driving growth and enhancing our contribution to Oman’s economic future. The OQBI IPO represents more than just a financial milestone; it stands as a testament to our commitment to driving innovation, advancing sustainability, and delivering lasting value to our stakeholders.

Thank you for your continued support as we embark on this significant new chapter in OQBI’s journey.
Khalid Al Asmi

Chief Executive Officer, OQ Base Industries

Key documents

OQBI IPO Prospectus

OQBI Sharia Compliance Certificate

Offer Notice

OQBI IPO booklet

OQBI Kuwait Prospectus

Key announcements

ITF Press release

OQ Base Industries

Price Range Press Release

How to Subscribe

Make an informed decision

  • Read the Prospectus for more information about the Company, its initial public offering, and who is eligible to participate in the Offer.
  • Then, consult your legal, business, financial or tax adviser(s) for legal, business, financial or tax advice, as required, for an investment in the shares.

Make sure you have an account at the MCD

  • If you do not have an investor account or a corresponding investor number with Muscat Clearing and Depository Company S.A.O.C. (MCD); you must apply to obtain an investor number and open an account by completing the “MCD Application”.
  • You can apply from the MCD’s Head Office; via the website www.mcd.om; or from brokerage companies licensed by the FSA.
  • The completed form must be submitted by you through any of the following channels:
    – At the head office of the MCD, at P.O. Box 952, Postal Code 112, Ruwi, Muscat, Sultanate of Oman;
    – At the office of any brokerage company licensed by the FSA;
    – Via facsimile to MCD at +968 24817491; or
    – Via MCD website portal (www.mcd.om) with your investor account
  • Remember that all your investments will be registered via this account.

Subscribe to the Offering

  • If you have decided to invest, subscribe to the Offering by placing an application with one of the Collection Agents.
  • Each Collection Agent will have its own channels for applications.
  • Typically, you will have the option to apply online; via a branch; or via your bank relationship manager.

Collection Agents

Details of the collection agents and the subscription process will be announced upon publication of the prospectus summary.

What documents do I need to apply for shares?

  • Please contact your broker or the Muscat Clearing and Depository Company S.A.O.C. (MCD) to confirm that your records with them are up to date and no further information is required by them to permit you to subscribe to the Offering.
  • For the purpose of applying for the shares in the Offering, you will be required to complete an application form, which is available from the Collection Agents, your broker, or the MCD.

Can bank customers use their mobile banking apps to digitally subscribe to the IPO?

Most banks offer customers the option to apply through their mobile banking app. Please check with your bank to check if this is active on your mobile app.

Frequently Asked Questions

What is OQBI, and what does the company do?

OQ Base Industries (SFZ) SAOG (under transformation) (OQBI) is one of the world’s largest co-located and fully integrated facilities, focusing on the production of methanol, ammonia, and LPG products.

OQBI is Oman’s only wholly state-owned methanol, ammonia and LPG products company, and is supported by OQ Group, a global and fully integrated energy player, wholly owned by the Omani government through the Oman Investment Authority (OIA).
Located within the Salalah Free Zone (SFZ) in southern Oman, OQBi comprises the following plants that deliver a combined 1.8 Mtpa nameplate production capacity:

  • An integrated 1,095 Ktpa methanol plant (commissioned in 2010)
  • 365 Ktpa ammonia plant (commissioned in 2022)
  • 356 Ktpa LPG products plant (commissioned in 2021)

All three plants are located in the Salalah Free Zone, which provides a full tax-exemption, and receives feedstock under a long-term contract with Integrated Gas Company (IGC) – an entity owned by the Omani Ministry of Finance – through a pipeline network operated by the OQ Group’s OQ Gas Networks.

100% of OQBI methanol production, and ~87% of OQBI LPG products (propane, butane, condensate & LPG), are exported outside of Oman via OQ Trading, OQ Group’s global trading business.

OQBI has a strong Environment, Social & Governance (ESG) and Health, Safety & Environment (HSE) track record. The company is committed to driving sustainable growth and operational excellence by cultivating a people-focused culture, through energy-efficient decarbonisation initiatives, and fostering domestic growth. The company’s 411 employees (as of June 2024) and highly experienced leadership are the driving force behind OQBI’s success.

Where is OQBI planning to list, and why on that particular exchange?

OQBI has announced its Intention to Float on the Muscat Stock Exchange. The shares of the Company will be listed on the MSX in accordance with the laws and procedures that are in force on the date application is made for the listing and registration.

What are OQBI’s competitive strengths?

OQBI holds a differentiated and highly strategic position in the Sultanate of Oman, and enjoys a number of competitive strengths:

  • Robust industry environment for methanol, ammonia, and LPG products, with strong demand growth across a broad range of end markets.
  • Competitive cost position enabled by fully integrated, state-of-the-art assets with high reliability, and advantaged long-term gas supply contracts.
  • Attractive geographic location and access to global logistics network, scale and expertise of the OQ trading platform.
  • Tangible future growth pathways including a debottlenecking project to increase methanol capacity by 50%.
  • Optimally positioned to capitalise on the transition to clean methanol and ammonia to serve emerging clean fuels demand.
  • Attractive dividend capacity supported by high margins and strong cashflow generation across commodity cycles.

What percentage of OQBI’s share capital is being offered?

The Offering represents up to 49% of the total issued share capital of the Company.

Who are the existing OQBI shareholders? Who owns OQBI?

OQBI is a wholly owned subsidiary of OQ SAOC prior to the completion of the IPO. OQ is Oman’s flagship energy company, which is in turn 100% owned by the Oman Investment Authority, the Sultanate of Oman’s investment arm. OQBI’s journey of downstream production started in 2010 with the commissioning of its methanol plant. The LPG products plant was subsequently commissioned in 2021, and the ammonia plant in 2022.

What is OQBI’s growth strategy?

OQBI’s growth strategy is built upon operational excellence and encompasses multiple long-term growth pathways. The company’s Methanol Brownfield Expansion Project, scheduled for 2028, is supported by strong commercial rationale to capitalise on additional methanol demand with an estimated 550 Ktpa methanol capacity increase. Furthermore, OQBI’s growth pathway includes Downstream Industries for 2030 (Acetic acid/PTA, urea formaldehyde, ammonium phosphates, ammonium nitrates, PAM, and butadiene). And by 2040, the company plans the inclusion of blue and green ammonia and methanol into their production fold, with end-markets for these products including the marine fuel, transportation, agriculture, and energy production sectors.

How has OQBI performed financially?

OQBI’s high-quality asset base, experienced management team, and commitment to operational excellence have supported an impressive operational performance. This operational success has enabled OQBI to deliver a highly resilient financial performance.

  • LTM (June 2024) EBITDA at $202 MM OQBI (based on combined financial statements)
  • LTM June 2024 FCF at $165 MM OQBI (based on combined financial statements)
  • LTM Revenue (June 2024) at $227 MM for OQBI methanol, $85 MM for OQBI ammonia, and $202 MM for OQBI LPG products.
  • For more information, refer to the Offer document.

What is OQBI’s dividend policy?

  • The Company intends to pay dividends twice each fiscal year after the Offering.
  • The Company intends to maintain a robust dividend policy designed to return to Shareholders substantially all of its distributable free cash flow after providing for growth opportunities and subject to credit rating considerations.
  • The Company expects to pay a dividend of OMR 32.7 million (~ US$85 million) for the fiscal year 2024
  • The Company expects to pay the first dividend distribution of approximately OMR 24.5 million (US ~$63.6 million) for the first nine months of 2024 by January 2025 and expects to pay the second dividend distribution for the last three months of 2024 of approximately OMR 8.2 million (US ~$21.3 million) by April 2025.
  • Thereafter, for the next two financial years ending 31 December 2025 and 31 December 2026, the Company intends to pay a dividend which is a minimum of five per cent increase on the dividend paid for the previous year.
  • For the fiscal year ended 31 December 2027 and onwards, the Company expects to distribute any cash not specifically reserved for general corporate purposes, growth investment or M&A activity.
  • The Company’s dividend policy is designed to reflect the Company’s expectation of strong cash flow and expected long-term earnings potential while allowing the Company to retain sufficient capital to fund ongoing operating requirements and continued investment for long-term growth.
  • The Company’s ability to pay dividends is dependent on a number of factors, including the market conditions, availability of distributable reserves, its capital expenditure plans and other cash requirements in future periods, as well as the necessary approvals.

What makes this IPO attractive for investors and who can invest?

The OQBI Offering presents a unique opportunity for investors due to its diversified portfolio, which includes the production of methanol, ammonia, and LPG—essential products with strong global demand. The strategic location in the Salalah Free Zone enhances export capabilities, while operational efficiency ensures resilience against market fluctuations.

Additionally, OQBI benefits from unique long-term contractual arrangements for feedstock procurement and the offtake of finished products, providing stability and predictability in its operations. This IPO is open to a wide range of investors, including institutional investors, retail investors, and potential anchor investors, all seeking to engage with a forward-looking company positioned for sustainable growth and value creation in an evolving market.

How does the subscription process work?

Please visit the “How to Subscribe” section on this website for more information on how to apply for shares.

What changes to the offer structure are you implementing for the OQ Base Industries IPO?

Each transaction is tailored to the specific nature, scale, and strategic value of the business to investors. For OQBI, the IPO process has been optimised by integrating insights from investor feedback. In collaboration with regulators, we have refined certain structural aspects to enhance efficiency and align with market expectations.

Given OQBI’s distinct market position and scalable business model, the offering is designed to foster broad investor engagement through carefully sized tranches that respond to demand across local, regional, and international markets. This approach not only ensures a balanced investor base but also reinforces market confidence, highlighting OQBI’s commitment to sustainable growth and value creation.

Which collection agents can subscriptions go through?

Details of the collection agents and the subscription process will be made available upon publication of the Offer notice.

What is the company’s policy on ESG and HSE?

OQBI is proud of a strong ESG and HSE track record and commitment, while championing a global reach towards sustainable solutions through our exceptional people.

  • OQBI’s Environmental framework entails emissions goals (5% reduction by 2025 vs. 2023 baseline via optimisation initiatives), and energy efficiency goals (reduction of c. 1 MMBTU/t produced by 2025 vs. 2023 baseline).
  • OQBI’s Social framework encompasses health and safety considerations (advocating for optimal standards at 4.7+ MM hours without LTI), as well as health and safety certifications and standards (Halal certification for methanol, and ISO standards for health and safety). In terms of human rights protection, OQBI promotes Omanisation, diversity in the workplace, and employee wellness).
  • The company’s Governance framework entails impactful Corporate Social Investment (CSI) initiatives, as well as the promotion of sustainable finance, whereby OQBI aligns investments with ESG goals, and provides transparent sustainability reports.
  • Furthermore, OQBI believes in sharing success by expanding the value chain to the communities where the company operates. OQBI’s commitment to corporate responsibility is translated into impactful initiatives that aim to empower all groups in our communities, build strong local partnerships, and enable sustainable development.
  • OQBI, as part of the OQ group, is actively committed to sustainability across its operations, aligning with global initiatives such as the Paris Agreement and the United Nations Sustainable Development Goals (UN SDGs). The company’s sustainability strategy integrates environmental, social, and economic aspects, while emphasising energy efficiency, emissions reduction, and the advancement of renewable energy projects. OQBI’s approach to sustainability includes reducing its carbon footprint by leveraging green hydrogen projects and managing water consumption efficiently. The company also focuses on integrating sustainability into its operational framework, including the integration of renewable energy and efforts to manage and minimise environmental impacts across its production processes. Furthermore, OQ has made significant investments in decarbonisation and is working to align its operations with Oman’s Vision 2040, which focuses on sustainable development and environmental stewardship.
  • In terms of OQBI’s HSE policy, the company has been awarded a number of leading certifications for quality management and health and safety systems. As of H1 2024, OQBI registered 4.7+ MM hours without lost time incident. Safety is an absolute priority for OQBI: we are systematic and proactive in identifying and managing workplace and operational risks to ensure the wellbeing of our people, the safety of our operations, and the protection of the environment.

How does the refund process work?

The Offer Price will be determined by the outcome of the bookbuild Offering to Category I applicants. Any refunds due to each Category II applicant will be calculated based on the difference between (i) Category II application money paid by such Category II applicant, and (ii) the product of the number of shares allotted to such Category II applicant and Offer Price. The details of the applicant’s bank account listed in the records of the Muscat Clearing and Depository Company S.A.O.C. (MCD) will be used for transferring any refund. However, if an applicant takes a leverage facility for the IPO from a collection agent, the refund will be made into the applicant’s loan account with the respective collection agent. For more information on the refund process please visit the MCD website (www.mcd.om).

What geographies does OQBI operate in?

OQBI’s assets are located in the Salalah Free Zone in the Dhofar Governorate in southern Oman. This stable and strategic geographic location within the Arabian Peninsula provides access to the Port of Salalah (the largest of Oman’s ports), as well as multiple export hubs within Oman.

Can bank customers use their mobile banking apps to digitally subscribe to the IPO?

Most banks offer customers the option to apply through their mobile banking app. Please check with your bank to check if this is active on your mobile app.

Who are the people behind the OQBI management team?

OQBI boasts a leadership team with significant experience and skillsets, complimented by other senior management team members who have been involved in the evolution of the company as the Sultanate of Oman’s strategic energy asset. The company is led by:

  • Khalid Al Asmi / Chief Executive Officer
    Khalid Al Asmi brings extensive expertise in refinery operations, maintenance, and process optimisation within the energy sector. He has successfully led initiatives that enhance operational efficiency and drive strategic growth. His career at OQ has spanned various leadership roles, showcasing his strong management skills and technical proficiency in refinery and petrochemical operations.
  • Ihsan Al Jandal / Chief Operations Officer
    With a wealth of experience in maintenance and operations in the oil and gas sector, Ihsan Al Jandal has a proven track record in optimising petrochemical plant maintenance, turbomachinery, and power plant operations, significantly improving operational efficiency.
  • Ahmed Al Baraami / Chief Finance Officer
    Specialising in finance, investment, and supply chain management within the oil and gas industry, Ahmed Al Baraami has a strong background in developing financial strategies that optimise performance and drive business growth. Known for his leadership and ability to train and coach high-performing teams, Ahmed excels in dynamic business environments.
  • Ahmed Muqaibal / Chief Executive (People, Technology & Communication)
    With extensive experience in human resources and procurement positions, Ahmed Muqaibal is a successful leader on initiatives in talent management, employee engagement, and organisational development. He has significantly enhanced the company’s support services through his strategic approach to managing and developing organisational talent and capabilities.
  • Umaima Al Wahaibi (Head of Legal and Board Secretary)
    Umaima Al Wahaibi has over 11 years of experience in both private legal practice and in house. Prior to joining the Company, she held positions at OQ Group and Dentons, an international law firm. She is a qualified Omani Lawyer and a qualified Solicitor in the Senior Courts of England and Wales. Umaima holds a Bachelor of Laws from the London School of Economics and Political Science (UK) and has completed a Postgraduate Legal Practice Course (LPC) at the University of Law (UK).

Issue managers

Bank Dhofar SAOG

Bank Muscat SAOG

Media enquiries

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