Oman’s Abraj Energy Services IPO opens

Muscat: The initial public offering (IPO) of Abraj Energy Services (under transformation), a subsidiary of OQ, the global integrated energy group opens  (Sunday), 20 February 2023.

The offering allocated for the first category runs from 20 February until 2 March 2023, whereas the subscription in the second category runs from 20 February 20 until 1 March 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 percent 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 percent 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 percent 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 RO 0.242 to RO 0.249 per share.

The second category of shares will be offered for small investors and will account for no less than 15 percent 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 RO 0.224 per share, calculated at a maximum price of RO 0.249 with a discount of 10 percent.

Abraj has achieved outstanding performance during the financial year ending on 31 December 2021, with revenues amounting to RO 125 million (USD 322 million). The company recorded a compound annual growth rate of 23 percent from 2007 – 2021, supported by the growth of its fleet of drilling rigs.

Abraj Energy Services intends to pay dividends amounting to 85 percent of its profits generated during the financial year ending 31 December 2022. – ONA