Abraj Energy Services has announced an initial public offering (IPO) and listing on the Muscat Stock Exchange (MSX) in March 2023, subject to approvals from the Capital Market Authority of the Sultanate of Oman (CMA). The offering represents up to 49 per cent of Abraj’s total issued share capital.
The listing will allow investors to gain exposure to a leading onshore oil and gas field services provider in Oman, with a wide service offering including drilling, workover and well services.
The offer does not represent an issuance of new shares and represents the divestment of shares currently held by the selling shareholder. The proceeds of the offer will, therefore, accrue to the selling shareholder, and the company will not receive any proceeds from the sale. A minimum of 51 per cent shareholding will continue to be indirectly held by OQ.
The offering is being offered to eligible investors in Oman and eligible international investors outside the US (Phase I Investors) and to retail investors in Oman (Phase II Investors).
Abraj will pay yearly dividends. In 2023, it intends to pay a dividend of 85 per cent of profit for the year ended December 31, 2022. And in 2024 and 2025, the yearly dividend will be the higher of 85 per cent of the prior year’s profit or a six per cent increase on the prior year’s dividend.
Ayad Al Balushi, Chairman of the Board of Directors, Abraj, said: “Through its commitment to technological innovation and quality services, Abraj has earned its place as one of the leading Omani onshore oilfield drilling and well services companies. We are confident that Abraj is now well positioned to enter its next phase of growth as a publicly listed company on the Muscat Stock Exchange and look forward to welcoming our new shareholders on our growth journey.”
Saif Al Hamhami, CEO of Abraj, added: “Through this offering, we believe investors have an opportunity to gain exposure to a profitable, growing company with one of the Mena region’s youngest drilling fleets. We believe the company’s future is very bright, not least because it is already prequalified in four countries to conduct a range of services, setting the stage for international expansion geared towards delivering growth and shareholder value. At this exciting moment in Abraj’s journey, I would like to take the opportunity to sincerely thank our dedicated team of employees, as well as our strategic partners and shareholders, for their contribution and support in Abraj’s journey thus far.”
Ahli Bank EFG-Hermes UAE (acting in conjunction with EFG Hermes UAE) and National Bank of Oman have been appointed as joint global coordinators, and Ahli Bank and National Bank of Oman have been appointed as issue managers.--OGN