BUSINESS REPORTER
MUSCAT, FEB 19
The initial public offering (IPO) of Abraj Energy Services (under transformation), a subsidiary of OQ, the global integrated energy group, opens today (Monday) February 20, 2023. The offering allocated for the first category runs from February 20 until March 2, 2023, whereas the subscription in the second category runs from February 20 until March 1, 2023.
The shares of Abraj Energy Services are put for sale in an IPO as part of the divestment plan announced by Oman Investment Authority (OIA) to exit some governmental investments to provide investment opportunities for Omani and foreign investments to achieve the objectives of Oman Vision 2040.
This step aims to promote the private sector’s participation in various economic sectors at the national level. The IPO will also enhance economic diversification policies and attract investors from Oman and abroad.
By virtue of the IPO, 49 per cent of the issued capital of Abraj Energy Services (i.e., 377,398,000 shares of the company) will be put for sale. The selling shareholders will maintain their right to adjust the IPO size at any time before the end of the subscription period.
The company put 49 per cent of its shares for sale in an IPO after obtaining the necessary regulatory approvals from the Capital Market Authority (CMA) in the Sultanate of Oman.
The shares will be offered in two parallel categories. The first category will be allocated to major investors and will account for 85 per cent maximum of the total public offering. It will be directed to major and corporate investors in Oman and international investors.
The subscription price in the first category will be set within the range of 242 baisas to 249 baisas per share.
The second category of shares will be offered for small investors and will account for no less than 15 per cent of the total public offering. It is allocated to individual investors in Oman.
The shares of this second category will be offered at a maximum discounted price of 224 baisas per share, calculated at a maximum price of 249 baisas with a discount of 10 per cent.
Abraj has achieved outstanding performance during the financial year ending on December 31 2021, with revenues amounting to RO 125 million ($322 million). The company recorded a compound annual growth rate of 23 per cent from 2007 – 2021, supported by the growth of its fleet of drilling rigs.
Abraj Energy Services intends to pay dividends amounting to 85 per cent of its profits generated during the financial year ending December 31, 2022.
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