Oman’s Asyad Group to Sell Shares in Shipping Subsidiary Through IPO

Oman’s state-owned logistics firm, Asyad Group, has announced plans to sell shares in its shipping subsidiary through an initial public offering (IPO) as part of the country’s privatization drive. The group, owned by Oman’s sovereign wealth fund, intends to sell at least a 20% stake in Asyad Shipping Co and list it on the Muscat stock exchange, according to a document detailing its intentions.

Asyad Group stated, “The intended listing would provide investors with the opportunity to invest in one of the world’s largest diversified maritime shipping companies and a key player in the Omani economy.” This move is in line with Oman’s efforts to attract foreign investors through privatization and fiscal reforms, which have helped the country reduce debt and turn its fiscal deficit into a surplus since 2022.

Asyad Shipping specializes in transporting liquefied natural gas (LNG), crude oil, and other products, with energy giants like BP and Shell, as well as trading firm Trafigura, among its customers and partners. Last year, Reuters reported that Asyad was planning an IPO for its subsidiary, with Jefferies Group and EFG Hermes selected as advisers.

The IPO will be conducted in two tranches, with 75% offered to eligible investors in Oman, qualified institutional investors, and other foreign investors. Anchor investors will have access to 30% of this tranche, although specific names were not disclosed. The remaining 25% will be available to retail investors in Oman.

The subscription period is expected to commence next month pending regulatory approval. Asyad Shipping plans to distribute dividends semi-annually, starting in September 2025 for the first half of the year. The company reported an adjusted core profit margin of 69% for the first nine months of last year, up from 65% in the same period in 2023.

Oman Investment Bank, EFG Hermes, JP Morgan, and Jefferies are serving as joint global coordinators, with Sohar International acting as a joint global coordinator and issue manager. Credit Agricole and Societe Generale are joint bookrunners for the IPO.

(Source: Reuters – Reporting by Federico Maccioni; editing by Jason Neely, Louise Heavens, and Christina Fincher)