Oman’s OQ Gas Networks Plans Muscat’s Biggest IPO in Almost Two Decades 

Oman's OQ Gas Networks (OQGN) plans to float up to 49% of its shares.
Oman's OQ Gas Networks (OQGN) plans to float up to 49% of its shares.
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Oman’s OQ Gas Networks Plans Muscat’s Biggest IPO in Almost Two Decades 

Oman's OQ Gas Networks (OQGN) plans to float up to 49% of its shares.
Oman's OQ Gas Networks (OQGN) plans to float up to 49% of its shares.

Oman's OQ Gas Networks (OQGN), the pipelines business of state oil giant OQ, said on Monday it plans to float up to 49% of its shares, in what is expected to be the biggest initial public offering in the Sultanate in almost two decades.

The offering, which begins this month, will provide investors with access to growth in the company that holds a natural monopoly over essential gas transportation in the country, the company said in a statement.

OQGN is Oman's exclusive gas transportation system operator, supplying natural gas to the country's power plants, freezones, industrial clusters, LNG complexes and other customers.

OQ, directly and indirectly through Oman Energy Trading Company Limited and Oman Oil Services Limited, is offering up to 49% of the shares, the document said.

The selling shareholders reserve the right to amend the size of the offering at any time before the end of the subscription period at their sole discretion. Immediately following the offering, a minimum of 51% will continue to be held by OQ.

The company plans to pay a semi-annual dividend in cash to investors after the offering. A first dividend of 33 million rials for the first nine months of 2023 is estimated to be paid around January next year, and a second dividend of 11 million rials for the last three months of 2023 will be paid around April, 2024.

The planned IPO follows the flotation of OQ's oil drilling business, Abraj Energy Services, in March which raised $244 million from selling a 49% stake.

Oman follows Abu Dhabi and Saudi Arabia in looking at sales of stakes in energy assets, capitalizing on a rebound in crude prices to attract foreign investors and boost interest on their respective bourses.

OQGN's IPO is part of a broader divestment program being implemented by the Sultanate's sovereign wealth fund, the Oman Investment Authority, Talal Al Awfi, OQ's Group CEO was quoted as saying in the statement on Monday.

"The listing of OQGN, which owns and operates critical gas transportation infrastructure in Oman, is in line with this ambition while enriching the dynamically developing Omani stock market," Al Awfi said.



Egypt's Net Foreign Assets Fall in September

A general view shows Tahrir Square in Cairo, Egypt July 13, 2020. (Reuters)
A general view shows Tahrir Square in Cairo, Egypt July 13, 2020. (Reuters)
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Egypt's Net Foreign Assets Fall in September

A general view shows Tahrir Square in Cairo, Egypt July 13, 2020. (Reuters)
A general view shows Tahrir Square in Cairo, Egypt July 13, 2020. (Reuters)

Egypt's net foreign assets (NFAs) fell by $591 million in September having dropped off sharply in August, central bank data showed on Friday.

NFAs declined to the equivalent of $10.31 billion at end-September from $9.72 billion in August, according to Reuters calculations based on the official central bank currency rate at the time, Reuters reported.

NFAs fell by $3.53 billion in August.

Egypt had been using its NFAs, which include foreign assets at both the central bank and commercial banks, to help prop up its currency since at least September 2021. NFAs turned negative in February 2022.

Foreign assets rose slightly at commercial banks in September but dipped at the central bank, while foreign liabilities climbed at commercial banks and eased at the central bank.