Octal gearing up for IPO

Oman-headquartered PET sheet maker Octal is rolling out its third phase of growth and mulling an initial public offering (IPO) to support its global expansion. Octal has, however, not yet decided on when to launch the IPO and in which market to do so.

Set up in 2006 with an investment of US$600 million, in the southern port city of Salalah, Octal claims to be the world's largest producer of PET sheet and resin on a single site and the world's leading clear rigid packing material supplier, producing nearly 1 million tonnes of bottle-grade PET and DPET (direct-to-sheet polyester sheet) sheet/year. It also has facilities in the US and Saudi Arabia with a capacity of 100,000 tonnes/year.

Company officials have been quoted as having said the decision regarding the IPO would be made in the second half of 2018, with a year for it to materialise.

According to a statement issued to commemorate Omani Industry Day, the company is spending US$110 million over a five-year period to produce new products, add capacity and expand its footprint into regions such as South America.

CEO Nicholas P Barkat said 2016 was a challenging yet rewarding year for Octal, while expecting a robust 2017, forecasting a 16% increase in sales this year over last year, similar to 2016, as it expands its product range and enters new markets.

In 2015, it had an export value of US$569 million, with 98% of its PET resin and sheet product sold overseas.