Oman's Abraj Energy Services Receives USD 2B Worth of Orders in IPO

One of Oman's major energy companies raised $244 million in an initial public offering of its oil-drilling unit, completing Muscat's largest listing in more than a decade and attracting Saudi Arabia's wealth fund as an anchor investor.

Investors placed $2 billion in orders for Abraj Energy Services' initial public offering, the latest sign of strong demand for deals in the energy-rich Gulf.

The final price was set by state-owned OQ SAOC at 249 baizas per share, the top end of an offer range that began at 242 baizas. Trading is set to begin on March 14.

The listing will be similar to that of Adnoc Gas. The Abu Dhabi company received $124 billion in orders for its $2.5 billion IPO last week, making it the largest so far.

In 2022, IPOs in the Middle East raised nearly $23 billion. While the boom was primarily concentrated in Saudi Arabia and the United Arab Emirates, Oman is now attempting to capitalise. Its sovereign wealth fund intends to raise more than $1.3 billion by selling assets in a variety of industries.

According to Bloomberg data, Abraj Energy's IPO will be Oman's largest since 2010, when telecom operator Nawras - now known as Ooredoo Oman - raised $475 million.

At the maximum price, anchor investors purchased 40% of Abraj Energy's shares. Saudi Omani Investment Co., a subsidiary of the kingdom's Public Investment Fund, will hold 20%, with Royal Court Affairs and SLB, the world's largest oil services company, each holding 10%.

The IPO is being led by Ahli Bank of Oman, EFG Hermes, and National Bank of Oman.