Oman India Fertiliser Company (OMIFCO) has garnered approximately $12 billion in orders for its initial public offering (IPO), significantly oversubscribing the offering. The company is aiming to raise roughly $678 million from the sale of a 25% stake, which would value the entire company at up to $2.7 billion. This substantial demand underscores strong investor interest in the Omani fertilizer producer.
The IPO, which opened for subscription on June 16 and closed on June 25, has seen individual investors oversubscribe their portion by 3.9 times, while institutional investors oversubscribed theirs by an impressive 27.4 times. The total subscription demand reached RO 4.69 billion (approximately $12.18 billion). This robust demand comes at a favorable time for fertilizer producers, as global urea and ammonia prices experienced a surge earlier in the year due to disruptions in key shipping routes like the Strait of Hormuz.
OMIFCO is jointly owned by OQ, Indian Farmers Fertiliser Cooperative (IFFCO), and Krishak Bharati Cooperative (KRIBHCO), who will retain a combined 75% ownership post-IPO. The company's strategic location outside the Strait of Hormuz has allowed it to maintain uninterrupted exports even during regional logistical disruptions. OMIFCO's primary export market is India, which accounted for 71% of its urea volumes and 61% of its ammonia exports between 2023 and 2025. The company's revenue in 2025 was approximately $802 million, with urea generating over 92% of its total revenue.
A key aspect of OMIFCO's financial structure is its long-term natural gas supply agreement with the Integrated Gas Company (IGC), extending until July 15, 2035. This agreement provides a stable feedstock supply, though a decarbonization-linked payment mechanism redirects a portion of incremental revenue from high urea prices towards Omani decarbonization initiatives, rather than entirely to shareholders. The company is also exploring expansion plans, including a third production train, which would require an additional $2.9 billion in capital and further gas allocation, a point of uncertainty for its long-term growth.
