Asyad Group Sets Sights on IPO for Shipping Unit
Deal News | Jan 22, 2025 | Zawya
Asyad Group, Oman's state-owned logistics firm, plans to sell a minimum of 20% of its shipping subsidiary through an initial public offering (IPO) as part of the country's broader privatisation drive. The IPO aims to list Asyad Shipping Co. on the Muscat Stock Exchange. This move aligns with Oman's strategy to attract foreign investment and fiscal reforms, which have helped turn a fiscal deficit into a surplus. The subsidiary, which partnerships with major energy firms like BP and Shell, focuses on transporting LNG, crude oil, and other products. The IPO will consist of two tranches, with 75% allocated to eligible investors in Oman and qualified institutional and foreign investors, and 25% for Omani retail investors. The company, which announced a profit margin of 69% for the first nine months of last year, expects the subscription period to start next month. Several banks including Oman Investment Bank, EFG Hermes, JP Morgan, and Jefferies are involved in coordinating the offering.
Sectors
- Logistics and Transportation
- Finance and Investment
- Energy
Geography
- Oman – The article discusses a company headquartered in Oman and its IPO on the Muscat stock exchange, making Oman a central geography.
- Gulf Region – Asyad Group's initiative is part of a broader Gulf region privatisation trend to attract investors, relevant to the economic strategy in the region.
Industry
- Logistics and Transportation – This industry classification is relevant because the article discusses Asyad Shipping, a division of Asyad Group, which operates in the maritime shipping sector.
- Finance and Investment – The article is focused on the IPO process, involving various financial institutions, indicative of the finance and investment industry.
- Energy – The article mentions Asyad Shipping's key partnerships with energy firms like BP and Shell, which highlights its role in the energy sector.
Financials
- 20% – Minimum stake planned to be sold through the IPO of Asyad Shipping.
- 69% – Adjusted core profit margin posted by Asyad Shipping for the first nine months of last year.
- 30% – Portion of share tranche earmarked for anchor investors.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Asyad Group | Selling Company | Company | State-owned logistics firm planning to IPO its shipping subsidiary. |
| Asyad Shipping Co. | Target Company | Company | The subsidiary of Asyad Group slated for IPO, involved in maritime shipping. |
| Oman Investment Bank | Global Coordinator | Company | One of the financial advisors managing the IPO. |
| EFG Hermes | Global Coordinator | Company | Financial services company acting as joint coordinator for the IPO. |
| JP Morgan | Global Coordinator | Company | Financial services company involved in coordinating the IPO. |
| Jefferies Group | Global Coordinator | Company | Financial services company involved in coordinating the IPO. |
| Sohar International | Issue Manager | Company | Bank acting as joint global coordinator and issue manager. |
| Credit Agricole | Joint Bookrunner | Company | One of the banks serving as a bookrunner in the IPO process. |
| Societe Generale | Joint Bookrunner | Company | One of the banks serving as a bookrunner in the IPO process. |
| BP | Partner | Company | Major energy firm listed among Asyad Shipping's partners. |
| Shell | Partner | Company | Major energy firm listed among Asyad Shipping's partners. |
| Trafigura | Partner | Company | Trading firm listed among Asyad Shipping's partners. |
| Oman's Sovereign Wealth Fund | Owner | Government | The government fund that owns Asyad Group. |