Adds background, details on OQBI's offering and company operations

DUBAI, Nov 4 (Reuters) - Oman's OQ Base Industries (OQBI), the methanol, ammonia and liquefied petroleum gas (LPG) arm of state-owned OQ, plans to list an up to 49% stake on the local stock exchange, it said on Monday, adding to a string of IPOs in the Gulf country.

The listing is part of a privatisation programme by state-owned energy group OQ, which is helping Oman - a small non-OPEC oil producer - to diversify its economy and cut its debt.

OQBI's plans follow the flotations of OQ's exploration and production business OQEP.OM, which raised about $2 billion last month in the biggest IPO ever in Oman - as well as OQ's pipeline business OQGN.OM and oil and gas drilling arm Abraj Energy Services ABRJ.OM last year.

Based in Salalah, home to Oman's biggest port, OQBI operates three strategic divisions: methanol, ammonia and LPG products.

Methanol is a lower-carbon fuel while ammonia is mainly used in fertilisers and chemicals. LPG includes propane, butane, and cooking gas, which are used as fuel for cars, heating and to produce other petrochemicals.

The company said in a statement on Monday that it expects to pay a dividend of 32.7 million Omani riyals ($85 million) for 2024 and distribute a dividend at least 5% higher than this year's payout for 2025 and 2026.

It posted revenue of $510 million and an adjusted core profit margin of 43.1% last year.

OQBI said that all of the proceeds from the offering will be distributed to the selling shareholders, which comprise OQ and its units Takamul Investment Company and OQ Salalah Industries Company.

The subscription period for the IPO is expected to start this month and shares are expected to begin trading on the Muscat stock exchange in December.

Morgan Stanley, Bank Dhofar and Bank Muscat were appointed joint global coordinators for the IPO, it said.

(Reporting by Federico Maccioni;
Editing by David Goodman and Emelia Sithole-Matarise)

((Federico.maccioni@thomsonreuters.com; +971 527370852;))