Abraj boosts investor confidence with IPOs in Oman

Muscat: Boosting confidence in the subscription of Abraj Energy Services, a total of 40 per cent of the shares were purchased by the founders of the company including, the Saudi Omani Investment Company (SOIC).

These entities collectively constitute the ‘main investors’ and have complied with payment of OMR37,588,840 in the Initial Public Offering (IPO), which accounts for 40 per cent of the IPO.

Abraj offers its shares for subscription in two parallel categories. The first of the categories is allocated for major investors and will account for a maximum of 85 per cent of the total public offering. This is directed to major and corporate investors in Oman and international investors. The subscription price in the first category is set within the range of 242 baisas to 249 baisas per share.

The total value of the IPO range between OMR91.33 – 93.97 million (approximately $237.22 – 244.08 million). As such the company’s market value on being listed on Muscat Stock Exchange will range between OMR186.39 – 191.78 million ($484.13 – 498.13 million).

Engineer Ahmed bin Said Al-Azkawi, Chief Executive of OQ Upstream, said, "The subscription of the founders in 40 per cent of Abraj Energy Services’ shares enhances the confidence in the success of the IPO. The signing of the anchor investment agreement with the Saudi Omani Investment Company for the purchase of 20 per cent of Abraj’s shares put for sale in the IPO reflects the regional growth strategy adopted by our company and its commitment to supporting the objectives of Oman Vision 2040 by attracting direct foreign investments."

Ayad bin Ali Al-Balushi, Board Chairman of Abraj Energy Services, said,"The subscription of founding investors in 40 per cent of the shares is the source of confidence for all investors. This move demonstrates SOIC’s trust in Abraj’s future as a financially resilient and high-growth business with enormous potential for regional growth. We look forward to welcoming SOIC as a main investor in our company to leverage long-term relationships and enhance the varied base of its customers to provide the finest drilling technology and wells services at the sector’s level. Through this agreement, we pledge to accelerate and enhance our business scope as the leading provider of oilfield services that contributes to promoting the In-Country Value and offers support towards developing capital markets in the Sultanate of Oman."

Speaking on occasion, Muteb bin Mohamed Al-Shathri, Deputy CEO of the SOIC, said, "Abraj is a fast-growing company with solid operational foundations and sounds financial resources. Therefore, our participation as a main investor in its IPO will enhance the diversity of its portfolio. It will also provide a new opportunity through which our company will contribute towards achieving the long-term objectives of the Saudi Vision 2030 and the development of the capital markets in the region."