Issue Date: 25 November 2024
We recommend “SUBSCRIBE” to the IPO of OQBI. According to our estimate, the fair value of the company is OMR 0.128/share, implying an upside of 15.3% to the upper band category I IPO offer price of OMR 0.111/share.
OQBI : Largest integrated producer of methanol, ammonia and LPG in Oman
- Robust industry environment for methanol, ammonia, and LPG Products, with demand growth expected across a broad range of end markets.
- Located within the Salalah Free Zone with the benefit of tax exemption and strategic geographic location which provides access to global logistics network, scale, and expertise of OQ Trading platform.
- Potential for further upside to volumes produced as OQBI is doing a feasibility analysis of a brownfield expansion project to increase methanol plant capacity by 50%. We currently do not include the potential expansion in our estimates as the Final Investment Decision (FID) has not been taken yet. Potential to capitalize on the transition to clean methanol and ammonia supporting energy transition.