Shares of Oman India Fertilizer Company (OMIFCO) surged nearly 20% on their trading debut on Wednesday following a $678 million initial public offering, buoyed by a robust regional appetite for Gulf state-backed assets.
The stock jumped 18.6% to 185 baizas ($0.4806) from its offering price of 156 baizas, defying a slightly weaker broader market. Muscat's benchmark index slipped 0.1% amid renewed tensions between the United States and Iran.
The deal valued the joint venture at about $2.7 billion and ranks among the region's largest listings this year. The offering drew $12.2 billion in aggregate demand — a record for an Omani IPO — and was 18 times oversubscribed.
Selling shareholders Omani state energy group OQ and India's IFFCO and KRIBHCO sold a combined 25% stake in the Sur-based ammonia and urea manufacturer.
Institutional books were 27.4 times oversubscribed, while retail demand reached 3.9 times.
Executives told Reuters they expect a $185 million baseline dividend for 2026, plus a $25 million special payout. The base dividend will increase by 3% annually for 2027 and 2028.
Despite the Iran war and interruptions to Strait of Hormuz traffic, OMIFCO's operations have remained undisrupted. CFO Abdullah Humaid Al-Hashami said the recent regional conflict drove a temporary, three-to-four-month spike in urea and ammonia prices that is now normalising.
OMIFCO is evaluating an expansion project to double its capacity, with a final investment decision pending. The project will take about five years to complete following the decision.
India remains the company's primary market, receiving the bulk of its exports through offtaker OQ Trading.
"On average, around 50% to 60% will go to India because we are getting the highest netback anyway," Al-Hashami said. "India is the highest importer of urea after China, and we are lucky to have India nearby with this high demand."