Oman India Fertiliser Co. eyes $2.5B IPO amid price surge
Oman India Fertiliser Co. is weighing an IPO that could value the company at more than $2.5 billion, potentially making it one of the sultanate’s biggest stock offerings.
The fertilizer producer, which is backed by the Oman Investment Authority and the Indian government, is planning to raise several hundred million dollars, with shareholders selling a combined stake of about 25%, Bloomberg reports.
It comes amid a rally in fertilizer prices driven by the regional conflict and would offer a welcome boost for both the Muscat exchange and the wider Middle East region, where deal flow had already started to slow down before the war began.
Société Générale, Arqaam Capital Ltd. and Bank Muscat SAOG are among the arrangers working on the deal.
Dubai Investments preparing IPOs for four of its subsidiaries
After leading the Gulf region as a source for IPOs last year, the UAE is kicking off 2025 with a new slate of stock offerings.
Dubai Investments, which is backed by the sovereign wealth fund Investment Corporation of Dubai, plans to take four of its subsidiaries public this year, CEO Khalid bin Kalba tells The National.
The company’s business units span a range of sectors, including real estate, building materials and construction, education and financial services, though Bin Kalba declined to be specific. “We talked to the local authorities with [regards to] our intention to IPO,” he said.
“The discussion is going on now [around] what multiples we are going to get and what value we are going to get for our divestments.”
Bankers set Saudi Aramco share price in secondary offering
While Saudi Arabia’s impending sale of a second chunk of shares in Aramco looks like it will be among the world’s biggest stock offerings in years, the deal is falling slightly shy of expectations.
After almost a week of marketing the sale in London, New York and other financial capitals, the kingdom’s bankers told investors they plan to price shares of the world’s biggest oil company at 27.25 Saudi riyals ($7.27) each, the Wall Street Journal reports.
That compares to the target range of 26.70 to 29 riyals and means the offering should yield $11.2 billion rather than the $12 billion previously mooted.
The reduced bounty could mean more budget tightening for some of the country’s mega-projects, such as Neom, that the offering is meant to finance, especially as oil prices slide below $80 a barrel.
Sustaining the ambitious pace of construction envisioned by Saudi Crown Prince Mohammed bin Salman would require crude oil prices closer to $100 a barrel, according to calculations by the International Monetary Fund cited by Bloomberg.
Among the stock offering’s attractions for investors are the steady and increasing dividend payouts Aramco offers relative to its global oil competitors.
The company carries a dividend yield of close to 7%, higher than the 3.4% at Exxon and 4.2% at Chevron, the Journal notes.
