Oman – Oman’s Abraj Energy Services, a subsidiary of globally integrated energy group OQ, has opened its IPO, offering for sale 49 percent (377,398,000 shares) of the company’s issued capital.
The first category offer runs from February 20 to March 2, while the second category subscription runs from February 20 to March 1, the Oman News Agency (ONA) reported.
Abraj Energy Services shares will be offered for sale as part of the divestiture plan announced by the Oman Investment Authority (OIA) in an IPO to divest some government investments to create investment opportunities for Omani and foreign investment to further the goals of the Oman Vision to be reached in 2040.
This move aims to encourage private sector participation in various economic sectors at the national level. The IPO will also improve economic diversification policy and attract investors from Oman and abroad.
The selling shareholders retain their right to adjust the IPO size at any time before the subscription period expires. The company has offered 49 percent of its shares for sale in an initial public offering after receiving necessary regulatory approvals from the Sultanate of Oman’s Capital Markets Authority (CMA).
The shares are offered in two parallel categories. The first category is allocated to large investors and accounts for a maximum of 85 percent of the total public offer. It is aimed at large and corporate investors in Oman as well as international investors. The subscription price in the first category will be set in the range of RO 0.242 ($0.62) to RO 0.249 per share.
The second category of shares is offered to retail investors and accounts for no less than 15 percent of the total public offering. It is allocated to individual investors in Oman. The shares in this second category are offered at a discounted maximum price of RO0.224 per share, charged at a maximum price of RO0.249 with a discount of 10 percent.
Abraj has delivered an outstanding performance for the fiscal year ended December 31, 2021 with revenues of RO 125 million (US$322 million). The Company has experienced a compound annual growth rate of 23 percent from 2007 to 2021, supported by growth in its drill rig fleet.
Abraj Energy Services intends to distribute dividends equal to 85 percent of its earnings for the year ended December 31, 2022.
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