Asyad Group SAOC, a logistics entity supported by Oman's sovereign wealth fund, is anticipated to finalize the pricing of its shipping unit's initial public offering (IPO) at the highest point of its designated range. This move is projected to generate 128.1 million Omani riyals, equivalent to approximately $332.7 million. The offering involves the sale of a 20% stake in Asyad Shipping Co., with shares priced at 123 baisas each, which marks the upper limit of the initial price range that commenced at 117 baisas. This valuation positions Asyad Shipping Co. at an estimated $1.66 billion.
This IPO is part of Oman's broader privatization program, which has seen state-backed companies go public. Asyad Shipping Co., which lists major energy firms like BP and Shell, as well as trading firm Trafigura among its clientele and partners, specializes in the transportation of liquefied natural gas (LNG), crude oil, and other related products. The company reported a strong financial performance for the first nine months of the previous year, achieving an adjusted core profit margin of 69%, an increase from 65% during the corresponding period in 2023. The company also intends to distribute semi-annual dividends, with the first payment for the initial six months of this year expected in September 2025.
The offering is structured into two tranches: 75% for eligible investors in Oman, institutional investors, and foreign investors, with 30% of this portion specifically allocated to anchor investors. The remaining 25% of the shares will be made available to retail investors within Oman. This privatization drive is central to Oman's strategy to attract foreign investment and has, alongside fiscal reforms, contributed to the reduction of the nation's debt and the conversion of a recent fiscal deficit into a surplus since 2022. Credit Agricole and Societe Generale are serving as joint bookrunners, while Oman Investment Bank, EFG Hermes, JP Morgan, Jefferies, and Sohar International are acting as joint global coordinators, with Sohar International also managing the issue.
