Oman India Fertiliser Company (OMIFCO) has announced plans to raise up to 261 million Omani riyals, equivalent to $678 million, through an initial public offering in Muscat, according to a company statement released on Friday. The shares to be placed in the market are existing ordinary shares being sold by the joint venture's current shareholders.
Under the terms disclosed, selling shareholders OQ, IFFCO and KRIBHCO will collectively offer a 25% stake to investors. The price per share is set in a band between 146 and 156 baisas, a range that pegs the company s valuation at as much as $2.71 billion at the top end of the scale.
Offering structure and allocation
The IPO structure divides the available shares between two investor categories. Institutional investors in category I are slated to receive 60% of the total allocation, while category II is reserved for retail investors based in Oman and will receive the remaining 40%. The shares being offered are existing holdings rather than newly issued stock.
Operations and market context
OMIFCO operates two ammonia plants and two urea plants in Oman, making the company a production hub for fertilizers within the Middle East. The company and market observers note that global fertilizer prices have risen following a near-total closure of the Strait of Hormuz attributed to the Iran war, a development highlighted in the company s announcement as part of the market backdrop.
Timing and significance
Shares are expected to commence trading in Muscat around July 8. The proposed listing is positioned to be among the largest in the region so far this year, reflecting both the size of the stake being offered and the valuation attached to the company.
Summary assessment
The transaction involves established shareholders OQ, IFFCO and KRIBHCO selling a defined portion of their existing holdings, at a price band that values OMIFCO at up to $2.71 billion. The split between institutional and retail allocations, together with the timing of the share debut, frames how demand will be channeled into this placement.
What remains clear from the company s announcement
- The offer is for existing ordinary shares representing 25% of OMIFCO.
- The price band is 146-156 baisas per share, leading to a potential top valuation of $2.71 billion.
- Allocation is split 60% for institutional investors and 40% for Omani retail investors.
- Trading is expected to begin around July 8, placing the listing among the region s larger offerings this year.
Beyond these specified details, the company s statement focuses on the mechanics of the sale, the allocation between investor categories, and the operational footprint of OMIFCO as a regional fertilizer producer. The announcement also notes the recent upward movement in global fertilizer prices in the context of disruptions to shipping through the Strait of Hormuz.