The Oman India Fertiliser Company (OMIFCO) recently saw its initial public offering (IPO) generate total subscription demand of $12.18 billion (RO 4.69 billion), far exceeding the initial offer value of $675 million (RO 260.88 million). This overwhelming demand signals robust investor confidence in both the company and the primary market in Oman. The IPO involved 1.67 billion shares, representing 25% of OMIFCO's capital, with an offer price set at $0.40 (156 baisa) per share during the book-building process.
Individual investors demonstrated substantial interest, with their subscription proceeds surpassing the offer value by 15 times, while institutional investors showed even stronger demand, oversubscribing by 27.4 times. The Financial Services Authority (FSA) approved the share allocation ratios, acknowledging the high investor interest and the IPO's critical role in fostering economic growth and financing various investment projects. Refunds for excess subscription amounts were scheduled to begin on July 2, 2026, with OMIFCO's shares slated for official listing on the Muscat Stock Exchange on July 8, 2026.
OMIFCO, incorporated in 1998, operates two ammonia and two urea trains in Sur, Oman. The company is jointly owned by OQ (50%), Indian Farmers Fertiliser Cooperative Limited, and Krishak Bharati Cooperative Limited (25% each). Ahead of the IPO, OMIFCO reported revenue of $802 million in 2025 and $207 million in the first quarter of 2026. The company anticipates distributing total dividends of $185 million for 2026, payable in two installments in September 2026 and April 2027, alongside a special dividend of $25 million with the first distribution. Omifco aims for a valuation of up to $2.7 billion in the IPO.
Key to OMIFCO's operations is a long-term natural gas agreement with Integrated Gas Company (IGC), providing 58.765 million MMBtu annually at a base price of $5.25 per MMBtu, increasing by 3% annually. This contract extends through July 2035. The company's production complex is strategically located outside the Strait of Hormuz, allowing uninterrupted exports, particularly important given its high reliance on exports, with India accounting for 71% of exported urea volumes and 61% of ammonia exports between 2023 and 2025. OMIFCO produced 1.35 million tonnes of ammonia and 2.07 million tonnes of urea in 2025.
