Oman plans IPO for state-owned logistics company

The Oman Investment Authority (OIA) is in the process of planning an initial public offering (IPO) for Asyad Group, the logistics company of the sultanate, as the Gulf nation intensifies its divestment programme.

Sources told Bloomberg that the OIA has invited banks to submit proposals for the share sale.

Specifics regarding the valuation or timing of the IPO are currently undisclosed. Representatives for the OIA were unavailable for comment.

Asyad Group identifies itself as a $4 billion enterprise, backed by an initial $26 billion in government infrastructure expenditure. Their work includes deep ports, dry ports, free zones, and a fleet comprising over 80 vessels. It also provides delivery services through Asyad Express.

This move is part of Oman’s efforts to strengthen its capital markets and secure funds, Bloomberg News has reported that banks have been asked to present proposals for three more IPOs in the Gulf nation since the beginning of 2024, including the exploration and production division of state energy company OQ SAOC, as well as the power utility.

Oman, the largest non-OPEC oil producer in the Middle East, hopes that an inflow of capital from state asset sales will stimulate industries such as energy, transport, and tourism. This mirrors a broader trend of divestment in the energy-rich region, as larger neighbors Saudi Arabia and the United Arab Emirates also seek to diversify their economies in anticipation of a post-oil era.

The OIA has stated that its divestment plan may include several dozen listings over the next five years as it aims to attain emerging-market status. Alongside Bahrain, Oman is one of only two countries in the six-nation Gulf Cooperation Council not classified as emerging markets by MSCI Inc.