Linklaters acts on OMIFCO’s USD2.7 billion IPO on Muscat Stock Exchange

Linklaters has advised Oman India Fertiliser Company SAOG, under transformation (“OMIFCO”), on its Initial Public Offering (“IPO”) on the Muscat Stock Exchange (“MSX”), and the Selling Shareholders, including OQ SAOC, the energy and investment holding company owned by the Oman Investment Authority, on the transaction.

Incorporated in 1998 in Oman as a collaborative initiative between the governments of Oman and the Republic of India, OMIFCO is an integrated producer of granular urea and anhydrous ammonia, operating the largest fertiliser complex in Oman and one of the top five in the Gulf Cooperative Council.

This IPO marks the sixth divestment by way of IPO undertaken by the Omani Investment Authority as part of its programme to support the development of the MSX and broader capital markets ecosystem in Oman. Linklaters also advised on each of the first five IPOs, of Asyad Shipping Company, OQ Base Industries, OQ Exploration and Production, OQ Gas Networks and Abraj Energy Services.

The final offer price has been set at Bzs 156 per share, at the top of the previously announced offer price range of Bzs 146 to Bzs 156 per share, raising gross proceeds of c. OMR261m (c. USDD678m) for the Selling Shareholders. Based on the final offer price, OMIFCO’s market capitalisation upon listing will be c. OMR 1.04bn (c. USDD2.70bn).

This transaction benefited from extremely strong investor demand notwithstanding geopolitical headwinds, with a book that was 18x oversubscribed, representing the highest ever demand generated for any IPO in the Sultanate of Oman and reflecting OMIFCO’s resilient performance and strong market position.

The team was led by partner and global chair of equities Jason Manketo (London & Dubai), alongside associates Kevin Stump (London) and Maya Frenkel (London). MAQ Legal and a team led by Asad Qayyum advised alongside Linklaters on Omani law matters.