Oman’s Abraj to offer 49pc of its share capital through an IPO
OIL AND GAS NEWS
Oman’s Abraj Energy Services will offer a total of 377.398 million shares, representing 49% of its share capital, through an initial public offering (IPO). The company has announced publication of the prospectus and details of the subscription period for its IPO.
Abraj Energy Services is the oil and gas drilling business of Oman's state energy company OQ. OQ plans to raise as much as $244 million from the IPO.
The offering will be split into two categories-- a Category I offer and a discounted Category II offer. The Category I Subscription Price Range has been set at between Bzs242 (baizas) and Bzs249 per share, implying a market capitalisation of between OMR186.39 million to OMR191.78 million ($484.13 million and $498.13 million).
The Category II Subscription Price is the Discounted Maximum Price of Bzs224 per Share, calculated as the Maximum Price of Bzs249 less a discount of 10%.
Minimum limit
The minimum limit for subscription for Category I is 803,300 Shares and in multiples of 100 Shares thereafter; for Category II it is 1,000 Shares and in multiples of 100 Shares thereafter.
The maximum limit for subscription for Category I (other than Anchor Investors) is 37,739,800 shares, representing 10% of the offer size.
For anchor investors it is 75,479,600 Shares, representing 20% of the offer size and for Category II Investors it is 803,200 shares.
All investors will be allocated at the same Offer Price (notwithstanding the retail discount), which will be determined based on the Category I bookbuilding process.
Anchor investors
Saudi Omani Investment Company (a wholly owned entity of the Public Investment Fund), Royal Court Affairs and Schlumberger Oman & Co LLC will be anchor investors in the IPO, with a total commitment of OMR37,588,840 (40% of the Offer Size).
Admission of the shares to listing and trading on the MSX is expected on or about March 14, 2023, subject to receiving all required regulatory approvals
Saif Al Hamhami, CEO of Abraj, said: “As one of the leading providers of onshore oilfield drilling and well services in Oman, we are confident in our leading domestic position and strong regional growth opportunities. Since announcing our intention to float on the MSX, we are extremely pleased to have received strong interest from investors.
“Amid robust sector fundamentals, a favourable market and with our diverse service offerings, including drilling, workover and well services, we believe that Abraj presents an attractive proposition for investors.”-- TradeArabia News Service
