One of Oman’s main energy firms raised $244 million from the initial public offering of its oil-drilling unit, pulling off Muscat’s largest listing in more than a decade and drawing in Saudi Arabia’s wealth fund as an anchor investor.
Investors placed $2 billion of orders for the IPO of Abraj Energy Services, the latest sign of strong demand for deals in the energy-rich Gulf.
State owned OQ SAOC set the final price at 249 baizas a share, the top end of an offer range that started at 242 baizas. Trading is due to start on March 14.
The listing will follow that of Adnoc Gas. The Abu Dhabi company drew orders worth $124 billion for its $2.5 billion IPO last week, the biggest so far this year.
Middle Eastern firms raised almost $23 billion through IPOs in 2022. While that boom was mainly confined to Saudi Arabia and the UAE, Oman is now trying to cash in. Its sovereign wealth fund plans to raise more than $1.3 billion by selling assets across several sectors.
Abraj Energy’s will be Oman’s largest offering since 2010, when telecom operator Nawras - now known as Ooredoo Oman - raised $475 million, data compiled by Bloomberg show.
Anchor investors subscribed for 40 per cent of Abraj Energy’s shares at the maximum price. Saudi Omani Investment Co., a unit of the kingdom’s Public Investment Fund, will own 20 per cent, while Royal Court Affairs and SLB, the world’s largest oil services company, will each take 10 per cent.
Ahli Bank of Oman, EFG Hermes, National Bank of Oman are leading the IPO.