Arab News, Sat, Sep 14, 2024 | Rabi al-Awwal 11, 1446
Oman’s wealth fund to launch IPOs across key sectors over next 5 years
Oman:
Oman’s sovereign wealth fund plans to launch
initial public offerings in key sectors from 2024 to 2028 as part of its
divestment strategy to raise additional market funds.
The Oman Investment Authority will focus on
energy, services, and logistics assets, aiming to boost revenues over the next
five years, it said in a post on X, formerly known as Twitter.
OIA generated 1 billion Omani rials ($2.59
billion) from divestments in subsidiaries and affiliated companies during 2022
and 2023.
The wealth fund plays a crucial and strategic role
in implementing the economic diversification goals outlined in the sultanate’s
Vision 2040 program.
In its annual report released in August, the
government-controlled fund revealed that its assets under management rose to
19.2 billion rials by the end of 2023, representing a rise of 11.6 percent
compared to the previous year.
“The divestment plan of OIA continues to achieve
its national targets. In 2022 and 2023, it successfully generated revenues
exceeding 1 billion rials after divesting from 12 investments, while continuing
to establish an institutional approach by updating the plan and creating
steering committees to ensure its effective management,” OIA said in its
statement.
The wealth fund added that the steering committees
will be set up in various companies to oversee the divestment process.
OIA also plans to roll out private placements,
encouraging investment in agriculture, aquaculture, and mining to support
business development.
Launched in 2022, OIA’s divestment strategy aims
to attract foreign investment, expand the Muscat Stock Exchange, and restructure
capital for greater efficiency. Other goals include repaying debts, localizing
new technologies, fostering partnerships with international investors, and
reinvesting revenues from divested assets.
Oman’s state energy firm OQ announced on Sept. 9
that it plans to offer a 25 percent stake in its exploration and production
business through an IPO next month, subject to regulatory approvals.
Oman’s decision to boost IPO activity comes as the
Gulf Cooperation Council region experiences a surge in public offerings.
In August, the Kuwait Financial Center, also known
as Markaz, reported that the region raised $3.6 billion through 23 offerings in
the first half of the year, with Saudi Arabia leading the market, raising $2.1
billion, a 141 percent increase year on year.