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Oman's OQ to list up to 49% stake in methanol, ammonia and LPG arm

Oman's OQ Base Industries ( OQBI), the methanol, ammonia and liquefied petroleum gas (LPG). arm of stateowned OQ, plans to note an as much as 49% stake on the. regional stock market, it stated on Monday, adding to a string of. IPOs in the Gulf nation.

The listing belongs to a privatisation programme by. state-owned energy group OQ, which is assisting Oman - a little. non-OPEC oil producer - to diversify its economy and cut its. debt.

OQBI's plans follow the flotations of OQ's exploration and. production organization, which raised about $2 billion. last month in the biggest IPO ever in Oman - in addition to OQ's. pipeline service and oil and gas drilling arm Abraj. Energy Provider in 2015.

Based in Salalah, home to Oman's biggest port, OQBI runs. three strategic departments: methanol, ammonia and LPG products.

Methanol is a lower-carbon fuel while ammonia is generally used. in fertilisers and chemicals. LPG includes propane, butane, and. cooking gas, which are utilized as fuel for automobiles, heating and to. produce other petrochemicals.

The company said in a statement on Monday that it anticipates to. pay a dividend of 32.7 million Omani riyals ($ 85 million) for. 2024 and distribute a dividend a minimum of 5% greater than this. year's payment for 2025 and 2026.

It published revenue of $510 million and an adjusted core. earnings margin of 43.1% last year.

OQBI said that all of the earnings from the offering will be. distributed to the offering investors, which comprise OQ and. its units Takamul Investment firm and OQ Salalah Industries. Business.

The membership duration for the IPO is anticipated to begin. this month and shares are expected to start trading on the. Muscat stock market in December.

Morgan Stanley, Bank Dhofar and Bank Muscat were designated. joint worldwide organizers for the IPO, it stated.

(source: Reuters)