Arab News, Tuesday, Mar 07, 2023 | Sha'ban 15, 1444
Oman’s Abraj Energy sets IPO price at top of range
Oman:
Oman’s Abraj Energy Services, the oil and gas
drilling business of state energy company OQ, has set the price for its initial
public offering at 249 baizas ($0.65) per share, Oman’s state news agency said
on Monday, which would value the company at about $498 million.
OQ is selling 49 percent, equivalent to 377.4
millon shares, of Abraj in a public share sale. The price range for the IPO was
set last month at between 242 and 249 baizas per share.
“Since announcing our intention to float on the
MSX, we are extremely pleased to have received strong interest from investors,”
said Saif Al-Hamhami, CEO of Abraj, at the time of the issuance of the
prospectus for the listing.
He said: “Amid robust sector fundamentals, a
favorable market and with our diverse service offerings, including drilling,
workover and well services, we believe that Abraj presents an attractive
proposition for investors.”
Ahli Bank, EFG-Hermes UAE Ltd. (acting in
conjunction with EFG Hermes UAE LLC) and National Bank of Oman have been
appointed as joint global coordinators. and Ahli Bank and National Bank of Oman
have been appointed as issue managers.
The shares of Abraj Energy Services are put for
sale in an IPO as part of the divestment plan announced by Oman Investment
Authority to exit some governmental investments to provide investment
opportunities for Omani and foreign investments to achieve the objectives of
Oman Vision 2040.
This step aims to promote the private sector’s
participation in various economic sectors at the national level.
The IPO will also enhance economic diversification
policies and attract investors from Oman and abroad.