Oman’s Asyad Group files to take its LNG transport arm public: Oman’s state-backed logistics giant Asyad Group has issued its intention to float (ITF) (pdf) at least a 20% stake in its wholly-owned subsidiary Asyad Shipping (ASC) on the Muscat Stock Exchange. Asyad’s LNG transport unit is reportedly seeking a valuation of USD 1 bn, Bloomberg reports, citing people it says are familiar with the matter. The story was also picked up by Reuters.

IN CONTEXT- The move falls under a broader government privatization push, which includes the sale of an additional 30 Omani state-backed assets, including power utility firm Oman Electricity Transmission.

What we know: Bookbuilding for the potential IPO is scheduled to begin next month, with the listing anticipated in early March. The offering will be available in two tranches — 75% for qualified institutional investors and 25% for retail investors. 30% of the tranche devoted to qualified institutional investors will be dedicated to anchor investors. Asyad Group, as a selling shareholder, will not be able to execute transactions on their shares in ASC for a period of 180 days from the first day of trading.

A sweetener for future investors: ASC plans to roll out a fixed semi-annual dividend of USD 150 mn for 2025 and 2026. For 2027, the company will shift gears to a performance-based model.

Pre-IPO bonus: ASC is planning a one-time USD 86 mn dividend for its existing shareholders this year, reflecting its robust performance in 2024.

REMEMBER- This has been in the cards for years now. Asyad Group said in 2021 that it was considering selling up to 40% of its shipping subsidiary. More broadly, Asyad Group has been planning to unload its non-strategic assets for at least a few years. The firm said it would be looking into private sector participation through IPOs or directly through assets.

About Asyad Shipping: Established in 2003, ASC currently manages a fleet of 89 vessels operating in over 60 countries. The company mainly functions as an LNG transporter, with British multinational oil and gas firms BP and Shell, as well as Brazilian miner Vale among the list of its partners and customers. Backed by Oman’s sovereign wealth fund the Oman Investment Authority, ASC parent company Asyad Group manages over USD 4 bn in assets, with a focus on logistics, transportation, port services, shipping, and freezones.

ASC by the numbers: ASC’s revenues hit USD 713.9 mn in 9M 2024, remaining basically unchanged compared to the previous year, according to the ITF. The company’s revenue grew at a CAGR of 22% from 2021 through 2023.

ADVISORS- EFG Hermes was appointed global coordinator, along with JPMorgan Chase, Jefferies Financial Group, and Oman Investment Bank, back in July 2024. Sohar International Bank was tapped as the issue manager, while Credit Agricole and Societe Generale will serve as joint bookrunners.

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