OQ Oman announced the sale of 20% of the shares of Abraaj Energy Services Company, a subsidiary of the group, about a month before it was listed on the Muscat Stock Exchange.
The giant Omani energy company signed the sale agreement with the Saudi Omani Investment Company, as part of efforts to attract foreign investments, according to data seen by the specialized energy platform.
OQ Omani’s signing of a basic investment agreement with the “Saudi Omani Investment Company” to sell 20% of the shares of “Abraaj”, one of the group companies (under listing) on the stock exchange, reflects the regional growth strategy pursued by the group and its commitment to support the objectives of Oman’s Vision 2040 by attracting foreign investments. Direct.
business increase
Signing an agreement with strategic investors increases the confidence of other segments of corporate and individual investors to subscribe in the Sultanate of Oman and abroad.
It is noteworthy that the signing of the agreement would accelerate and enhance the scope of Abraaj’s business as a leading oilfield services provider that contributes to enhancing local value and supports the development of capital markets in the Sultanate of Oman.
According to the prospectus, the Abraaj shares, approved by the Capital Market Authority, will be listed and traded on the Muscat Stock Exchange on March 14, 2023.
OQ Oman intends to offer 49% of the total capital of Abraaj shares, which is equivalent to 377 million and 398 thousand shares.
Abraaj stock price
The Capital Market Authority of the Sultanate of Oman has recently approved the prospectus for the issuance of shares of Abraaj Energy Services Company, one of the OQ Group companies (under transformation), relating to its conversion from a closed joint stock company to a public joint stock company, by offering 377 million and 398 thousand shares through public subscription.
The two parallel tracks will be followed in two categories. The first category represents the offering allocated to the category of large investors by 85% of the total volume of the offering as a maximum, and it is directed to major investors and institutional investors in the Sultanate of Oman and international investors, and the price range for subscription in this category was set between 242 and 249 baizas per share.
As for the offering allocated to the second category (small investors), it is not less than 15% of the total volume of the offering, and it is directed to individual investors in the Sultanate of Oman. Bz minus 10% discount.
* The Omani Rial is equivalent to 1000 baisa = 2.60 US dollars
Abraaj Energy Services announced the details of the subscription period for its initial public offering on the Muscat Stock Exchange. It is expected that the offering for the first category will extend from February 20 to March 2, while the subscription stage in the second category will extend from February 20 to March 1, 2023.
The offering consists of selling 49% of the total issued capital of Abraaj, which is equivalent to 377 million and 398 thousand of the company’s shares, with the selling shareholders retaining their right to adjust the size of the offering at any time before the end of the subscription period and according to their absolute discretion, and based on the laws applicable and after the approval of the Capital Market Authority.
Promote foreign investments
OQ said that the aim behind offering Abraaj shares on the stock exchange is to strengthen the Omani financial markets, raise the private sector’s contribution to the gross domestic product, attract foreign direct investment, and expand the investor base.
Abraaj, which was established in 2006, operates in the services of drilling and maintenance of onshore oil and gas wells in Oman, and is wholly owned indirectly by the Omani “OQ” group. direct.
The initial public offering is part of an exit plan announced by the Oman Investment Authority recently. OQ, the selling shareholder, is wholly owned by the Omani Investment Authority, which expects to exit 8 investments in 2023 to raise about $1.3 billion.
OQ is targeting to raise about $500 million from the Abraaj IPO, according to Bloomberg.
Abraaj Energy intends to distribute profits of 85% of the profits in 2022, during the current year. As the revenues of Abraaj in 2023 amounted to about 125 million Omani riyals ($ 323 million), and the return on equity reached 13.6% in the first 9 months of last year.
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