Oman’s Abraj Energy Announces Launch of Initial Public Offering, to Offer 49% Shares

Muscat: Abraj Energy Services S.A.O.G. (under transformation) today announced its intention to proceed with an initial public offering (IPO) and listing of 49% of its total issued share capital on Muscat Stock Exchange (MSX).

The offering is expected to take place in March 2023, subject to receiving the required regulatory approval from the Capital Market Authority (CMA).

The Offering is being offered to eligible investors in Oman and eligible international investors outside the United States “Phase I Investors” and to retail investors in Oman “Phase II Investors”.

The Subscription period for Phase I and Phase II investors is expected to commence in February, after receiving the required approval from the CMA.

This was announced during an introductory meeting held by Abraj Energy Services under the patronage of Abdulsalam Mohammed Al Murshidi, Chairman of Oman Investment Authority (OIA).

Al Murshidi said that the Company’s planned listing will allow investors to gain exposure to a leading onshore oil and gas field services provider in Oman, with a wide service offering that includes drilling, workover and well services.

On his turn, Ayad Ali Al Balushi, Chairman of the Board of Directors of Abraj Energy Services, said that this offering will contribute to economic diversification, especially as it is expected to attract many investors from Oman and beyond. It will also increase opportunities of further IPOs by OIA companies and other private sector companies.

Abraj Energy Services had RO 593 million (USD 1.5 billion) worth of order backlog for the years 2023 through 2031 as at 30 September 2022, equivalent to more than the last five full years of revenue.

The Company boasts strong revenue – for the year ended in 31 December 2021, the Company earned RO 125 million (USD 323 million) from contracts with customers. It also had a Compound Annual Growth Rate (CAGR) of 23% from 2007 to 2021, supported by growth in its drilling rig fleet.

The Company proposes to pay yearly dividends, subject to debt repayments and covenants, working capital requirements, operational expenditure obligations, growth plans and the necessary approvals.

In 2023 the Company intends to pay a dividend of 85% of profit for the year ended in 31 December 2022. In 2024 and 2025, Abraj Energy Services intends to pay a yearly dividend for the years ended in 31 December 2023 and 2024, respectively, which is the higher of 85% of the prior year’s profit or a six per cent increase on the prior year’s dividend. -ONA