MUSCAT: Abraj Energy Services SAOG (under transformation) announced on Tuesday the publication of the prospectus and details of the subscription period and process for its initial public offering (IPO) on the MSX.

Saif al Hamhami, CEO of Abraj, said: “As one of the leading providers of onshore oilfield drilling and well services in Oman, we are confident in our leading domestic position and strong regional growth opportunities. Since announcing our intention to float on the MSX, we are extremely pleased to have received strong interest from investors. 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.”

The IPO will be offered in a parallel offering as follows:

Category I: Category I Offer (large investors) represents a maximum of 85 per cent of the total Offering and will be made available to eligible large and institutional investors in Oman and eligible international institutional investors outside the United States. The Category I subscription price range for the Offering has been set at between Bzs 242 and Bzs 249 per share. The total Offering size is expected to be between RO 91.33 mn to RO 93.97 mn (c.$237.22 mn to $244.08 mn), implying a market capitalization at listing of between RO 186.39 mn and RO 191.78 mn (c.$484.13 mn and $498.13 mn). The Category I Offer is expected to run from February 20, 2023 to March 2, 2023.

Category II: Category II Offer (small investors) represents a minimum of 15 per cent of the total Offering, and will be made to eligible retail investors in Oman. The subscription price is discounted maximum price of Bzs 224 per share, calculated as the maximum price of Bzs 249 per share less a discount of 10 per cent. If there is excess demand in Category II, the allocation to Category II Investors may be increased up to a maximum of 35 per cent of the Offer size. If the aggregate demand in Category II is less than 15 per cent of the Offer size, then after full allocation to Category II Investors, the balance of the Shares will be made available to Category I Investors for allocation at the Offer Price, if there is oversubscription in Category I. Category II Offer is expected to run from February 20, 2023 to March 1, 2023.

All shares will be issued and allotted to investors at the same Offer Price, which will be determined based on the Category I book building process. The Offer Price will be decided by the selling shareholders in consultation with the Joint Global Coordinators and the CMA on the pricing date, expected to be on or around March 6, 2023.

Any refunds due to Category II Investors will be calculated based on the difference between (i) the Discounted Maximum Price and (ii) the Offer Price less a discount of 10 per cent.

Around 377,398,000 shares, equivalent to 49 per cent of the total issued share capital of Abraj, are being made available via the Offering, with the selling shareholders reserving the right to amend the size of the Offering at any time prior to the end of the subscription period at their sole discretion, subject to applicable laws and the approval of the CMA.

The admission of the shares to listing and trading on the MSX is expected on or around March 14, 2023.

On February 7, 2023, Abraj entered into anchor investment agreements with the Saudi Omani Investment Company (a wholly owned entity of the Public Investment Fund), Royal Court Affairs and Schlumberger Oman & Co LLC. In aggregate, the Anchor Investors have committed RO 37,588,840 to the IPO, representing 40 per cent of the offer size, with their shares subject to a 90 day lock-up arrangement, following admission.