IPO performance of state-owned firms on MSX reviewed

Muscat: The Economic and Financial Committee of the Shura Council convened its fifth meeting of the second annual session (2024–2025) of the tenth term. Chaired by Ahmed Saeed Al Sharqi, the meeting was attended by committee members and featured discussions with specialists from the Oman Investment Authority (OIA) and the Muscat Stock Exchange (MSX) to assess the impact of recent initial public offerings (IPOs) of government-owned companies.

During the meeting, committee members examined the current status of MSX, particularly focusing on the trading performance of certain government entities that were recently listed.

Discussions covered key concerns such as the underperformance of some IPOs, the implications for market liquidity and foreign and local capital inflows, as well as the broader impact of global financial markets on MSX.

OIA representatives presented a visual briefing outlining the authority’s divestment strategy, emphasising efforts to strengthen the private sector through primary and secondary offerings.

The strategy aims to channel proceeds into priority sectors that support Oman’s economic diversification plans.

The briefing also highlighted previous divestments and outlined upcoming plans, including an IPO for ASYAD Shipping.

Additionally, MSX officials provided an overview of the stock market’s overall performance and detailed the exchange’s role in preparing the market, investors, and brokers to ensure the success of future listings.

The meeting concluded with in-depth discussions among committee members on OIA’s future IPO plans, targeted sectors, and expected financial and economic returns.

 Members also explored ways to enhance MSX’s performance, building on its improved market trajectory in recent years.