MEOG: OQ outlines plans for Abraj IPO

Omani state oil firm OQ this week disclosed its plans to sell up to 49% of its Abraj Energy Services drilling arm in an initial public offering (IPO) on the Muscat Securities Market (MSX).

Documents posted on the Abraj website said that the subscription period would begin in February ahead of a March listing, with Bloomberg reporting in September that such a move could raise up to $500mn.

Up to 85% of the shares listed will be offered to institutional investors and will be made available to Omani and international investors, excluding those in the US. A minimum of 15% will be offered to retail investors.

Abraj said that its 2023 dividend would comprise 85% of 2022 profits.

The company’s CEO Saif Al Hamhami said: “We believe the company’s future is very bright, not least because it is already prequalified in four countries to conduct a range of services, setting the stage for international expansion geared towards delivering growth and shareholder value.”

Ahli Bank of Oman, EFG Hermes and National Bank of Oman have been hired as joint global co-ordinators for the listing.