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Oman's state energy company OQ SAOC plans to sell up to 49% of its fully-owned oil drilling unit Abraj Energy Services SAOC in an IPO as part of an exit plan from 35 companies for sovereign wealth fund, the Oman Investment Authority (OIA).
The subscription period will start in February and the shares are expected to be listed on the Muscat Stock Exchange in March, the Abraj said in a statement on its website.
A diversified oil and gas services firm, Abraj is the largest drilling contractor in Oman with a market share of almost 30%, Reuters reported.
Retail investors will be offered 15% of the total offering, while the Institutional offering represents 85% of the total offering.
Ahli Bank Oman, EFG Hermes UAE and National Bank of Oman are acting as global coordinators on the IPO. The offer will be open to investors in Oman, and international investors outside the US.
The subscription period is expected to begin in February. The IPO is subject to market conditions and various regulatory approvals.
Abraaj, which has 25 drilling rigs and 5 workover rigs, has an order backlog of 593 Omani rials million ($1.5 billion) for the years 2023-2031, equivalent to more than the last five full years of revenue, it said. The company said it expects to pay a dividend of 85% for last year in 2023.
Ayad Al Balushi, Chairman of Abraj said: "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."
(Reporting by Brinda Darasha; editing by Seban Scaria)
