Oman's state energy firm, OQ SAOC, has achieved a milestone by raising 288.2 million riyals ($748.6 million) through the highly successful initial public offering (IPO) of its gas pipelines business, OQ Gas Networks SAOG. The IPO was priced at the upper end of the range at 140 baisas per share, selling approximately 2.1 billion shares, representing a 49 percent stake in the company. The demand for the offering exceeded 4 billion rials, underscoring the robust appetite among investors for Gulf-based share sales, despite the recent geopolitical tensions between Israel and Hamas.

This IPO marks the largest listing in Muscat, surpassing Oman Telecommunications Co. SAOG's $748 million IPO in 2005, and underscores the resilience of the regional stock markets in the face of geopolitical uncertainties. The positive sentiment has also been observed in other IPOs across the Gulf region, such as the strong debut of ADES Holding Co., supported by Saudi Arabia's sovereign wealth fund.

OQ Gas Networks' successful IPO represents a key milestone in Oman's privatization initiative, aimed at bolstering state revenues and expanding the country's stock exchange. The participation of prominent anchor investors, including Fluxys Belgium SA, Saudi Arabia's Public Investment Fund, and the Qatar Investment Authority, has further solidified investor confidence in the offering.

To encourage retail participation, a discounted rate of 126 baisas per share, representing a 10 percent markdown on the IPO price, has been offered. Trading for OQ Gas Networks SAOG shares is set to commence on October 24, with Bank Muscat SAOG, Bank of America Corp., and EFG Hermes serving as joint global coordinators for the deal. The success of the IPO highlights the continued investor interest in regional markets, defying the global concerns about the recent volatility in international markets.