London: Oman’s Renaissance Services SAOG, a service provider to the oil and gas industry, is considering an initial public offering for its Topaz Energy & Marine unit, according to people familiar with the matter.

Renaissance, which has a market capitalisation of about $379 million (Dh1.37 billion), could seek a valuation of about $1.5 billion for the Dubai-based business, the people said. Goldman Sachs Group Inc and Morgan Stanley are advising on the share sale, which could take place next year in London, said the people, asking not to be identified as the details aren’t public.

Valuation and location are still being discussed and no final decisions have been made, the people said. Renaissance may also choose to retain its stake in the division for now, they said. Renaissance had abandoned a London IPO of the unit in 2011 and considered selling it a year later. Topaz raised $203 million in May to refinance its debt.

A representative for Renaissance couldn’t immediately be reached. Spokesmen for Goldman Sachs and Morgan Stanley declined to comment. A representative for Topaz pointed to a statement by chairman Samir Fancy in the 2017 annual report and declined to comment further.

“Topaz and its shareholders believe that it is the right time to consider the company’s strategic options in relation to growth and capital enhancement,” Fancy wrote at that time. “All options are being considered, including inorganic and capital market transactions such as an offering of securities,” though no decisions have been made, he said.

First-half earnings before interest, taxes, depreciation and amortisation rose 33 per cent from a year earlier to $77 million, according to Topaz. The offshore support vessel and marine logistics company said a key reason for the upswing was a turnaround of its African business in a buoyant market.

Standard Chartered Private Equity holds a minority stake in the company.