Omifco prices USD 678 mn IPO at the top end as investors look past regional tensions

Omifco prices its USD 678 mn IPO at top end: Oman India Fertiliser Company (Omifco) has priced its USD 678 mn listing at OMR 0.156 (USD 0.4) a share, the top of its price range. The listing attracted demand worth OMR 4.7 bn (USD 12.2 bn) — nearly 18 times the shares on offer, Oman’s Financial Services Authority (FSA) said in a statement. The offer was marketed in a price range of OMR 0.146-0.156 a share, valuing the fertilizer producer at about OMR 1.0 bn (USD 2.6 bn).

Institutional investors drive demand: Institutional investors accounted for the bulk of the interest, submitting bids worth around OMR 4.3 bn (USD 11.2 bn), or 24.4 times the shares allocated to the tranche.

The retail segment also saw healthy participation, attracting more than 72k subscribers and bids worth OMR 408 mn (USD 1.1 bn), 3.9 times oversubscribed.

Why it matters: Omifco’s IPO is the first major Omani listing to reach the market following the recent US-Iran conflict, offering an early gauge of investor appetite after weeks of heightened geopolitical uncertainty.

A quarter on the block: The IPO comprises 1.67 bn existing shares, representing 25% of Omifco’s equity, with no fresh shares being issued. The stake sale is being undertaken by existing shareholders — Oman Oil Company (OQ) is offloading 836.1 mn shares, and Indian Farmers Fertiliser Cooperative (Iffc) and Krishak Bharati Cooperative (KBC) are parting with 418.1 mn shares each.

Before the listing OQ held 50% stake in the firm while IFFC and KBC owned 25% each. The company manufactures ammonia and urea in Oman under long-term supply arrangements that make it an important supplier of fertilizers to India.

Who’s advising? Bank Muscat and Societe Generale are acting as joint global coordinators, with Bank Muscat also serving as issue manager for the Shariah-compliant offering. Arqaam Capital and United Securities are the joint bookrunners.

What’s next: Omifco is evaluating the addition of a third ammonia and urea production train at its Sur complex. It is also exploring opportunities in higher-value downstream chemicals and low-carbon ammonia as it looks to diversify its business and align with Oman’s energy transition ambitions (pdf). Trading on the Muscat Stock Exchange is expected to begin on 8 July.