Asyad Shipping to Launch $376 Million IPO in Oman

Asyad Shipping Company, a subsidiary of the Oman Investment Authority, is set to launch a privatization initial public offering (IPO) in Oman, which is expected to raise up to $376 million and could potentially be increased to $430 million. The offering will consist of secondary shares with a minimum 20% free-float, expandable to 23%. The IPO has already secured commitments from investors for 30% of the deal, with 25% dedicated to retail investors and the remainder offered to both international and local institutions. This marks a significant moment in Oman's expanding equity capital market (ECM) activities, propelled by entities like state-backed oil company OQ. The precedent set by OQ's spin-offs, along with a fixed dividend strategy outlined by Asyad, has gained traction among investors. Asyad Shipping possesses a fleet of 89 ships, connecting over 60 countries, making it a major player in oil, gas, LNG, dry bulk, and container transportation. Despite mixed performance from prior ECM expeditions, the Asyad IPO is expected to balance investor interest and market performance by employing conservative transaction strategies to correct past mistakes. International interest remains selective, concentrated among shipping and frontier market specialists. The IPO process is scheduled to begin in early February, concluding before Ramadan, with a projected listing in early March. Prominent financial institutions like EFG Hermes, Oman Investment Bank, Jefferies, JP Morgan, Sohar International, Credit Agricole/Kepler Cheuvreux and Societe Generale serve as coordinators and bookrunners for this venture.