A&O Shearman has advised the underwriters in connection with the approximately USD678m initial public offering (IPO) of Oman India Fertiliser Company SAOG ("OMIFCO") and its listing on the Muscat Stock Exchange (MSX). The transaction marks the fifth IPO in Oman on which A&O Shearman has represented the underwriters since 2023.
OMIFCO's existing shareholders OQ SAOC, Indian Farmers Fertiliser Cooperative Limited, and Krishak Bharati Cooperative Limited offered a total of 1,672,343,750 shares, representing 25% of OMIFCO's total issued share capital, to investors. Immediately following the offering, the selling shareholders retain a 75% shareholding in OMIFCO in aggregate. Upon listing, OMIFCO is expected to have a market capitalization of approximately OMR1.0 billion (approximately USD2.7bn).
OMIFCO successfully completed the bookbuilding and subscription process for the IPO, setting the final offer price at the top end of the announced price range at Bsz156 per share for all categories of the offering. The IPO generated gross proceeds of approximately USD678m. OMIFCO will not receive any of the proceeds of the offering, all of which will be paid to the selling shareholders.
“We are delighted to have advised the underwriters on this significant transaction, which underscores Oman's continued momentum as a destination for capital markets activity. OMIFCO's listing on the Muscat Stock Exchange is a testament to the strength of the company's operations and its strategic importance to both Oman and India. This transaction further reinforces our commitment to the region, and we are proud that it represents our fifth Omani IPO since 2023.”
Jeff Hendrickson
Partner
The A&O Shearman team was led by partners Jeff Hendrickson and Harsha Kumar alongside senior associate Baxter Schooley, associates James Clark and Mariam Jaber, and U.S. law clerk Jungyun Han.
OMIFCO is a joint venture between Oman and India focused on the production of ammonia and urea. Incorporated in 1998, with exports commencing in 2005, OMIFCO operates a two-train ammonia and two-train urea fertilizer manufacturing facility in Oman, with an annual nameplate production capacity of approximately 1.15 million metric tons of ammonia and 1.65 million metric tons of urea. OMIFCO leverages Oman's abundant natural gas as its primary feedstock and focuses on global markets, including India as a key market for fertilizers.