Muscat, Oman: Abraj Energy Services S.A.O.G. on Sunday announced its intention to offer 49 per cent of its issued share capital in an initial public offering on the Muscat Stock Exchange in March this year.
The listing is subject to receiving the required regulatory approvals from the sultanate’s Capital Market Authority. The 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 including drilling, workover and well services.
No new shares will be issued during the offer, and OQ will continue to indirectly have 51 per cent shareholding.
The offering is for eligible investors in Oman and international investors outside the US (Phase I investors with 85 per cent of the total offering) and retail investors in Oman (Phase II investors with 15 per cent of the offering).
The subscription period for both sets of investors is expected to commence in February.
The company proposes to pay yearly dividends. In 2023, the company intends to pay a dividend of 85 per cent of profit for the year ended December 31, 2022.
Commenting on the announcement, 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: “Throughout economic cycles, Abraj has demonstrated remarkable resilience, delivering strong financial performance and growth and ongoing innovation in new drilling technologies and well services. These are fundamentally important attributes as we look to an ambitious future of continued leadership in Oman and a corporate strategy that leverages the Company’s long-standing relationships and diverse customer base.”
Ahli Bank S.A.O.G., EFG-Hermes UAE Limited (acting in conjunction with EFG Hermes UAE LLC) and National Bank of Oman S.A.O.G. have been appointed as joint global coordinators, and Ahli Bank S.A.O.G. and National Bank of Oman S.A.O.G. have been appointed as issue managers.
Abraj is the leading and largest drilling contractor in Oman by contracted operating drilling rigs, with 29 per cent market share. The company has a diverse service offering, including drilling, workover and well services which includes fracturing, cementing and coiled tubing. It also operates one of the largest, advanced full range cementing laboratories in Oman.
Abraj had RO 593 million ($1.5 billion) worth of order backlog for the years 2023 through 2031 as on September 30, 2022, equivalent to more than the last five full years of revenue.
For the year ended December 31, 2021, the company earned RO 125 million ($323 million) from contracts with customers and had a CAGR of 23 per cent from 2007 to 2021, supported by growth in its drilling rig fleet.
Abraj Energy Services S.A.O.G. is an indirectly wholly owned subsidiary of OQ S.A.O.C., Oman’s leading integrated energy company.
