Oman’s state energy company, OQ SAOC, is preparing to raise approximately $2 billion by selling a 25% stake in its exploration and production arm, OQ Exploration & Production (OQEP), in an IPO that could become the largest in the Gulf nation’s history. The offering is expected to value the company at around $8 billion, though official valuation details remain undisclosed. To attract investors, OQ plans to distribute $600 million in annual dividends from 2024 to 2026, with an additional performance-linked dividend equating to 90% of cash flow after investments for 2025 and 2026.

The IPO comes at a time when Brent crude prices are at their lowest since 2021, and Oman, along with other OPEC+ members, continues to reduce production to stabilize the market. Despite global demand concerns, Middle Eastern IPO activity is picking up, with companies across various sectors raising nearly $4 billion this year. OQEP’s shares will begin trading on the Muscat Stock Exchange in October, supported by HSBC, Natixis, and local banks. This could become the largest IPO in the Gulf region since Adnoc Gas went public earlier this year.