Schlumberger Oman & Co LLC, the Omani subsidiary of global oilfield services giant Schlumberger (SLB), has pledged to subscribe 37.739 million shares in the Initial Public Offering (IPO) of Omani state-owned drilling company Abraj Energy Service (under transformation), which launches on the Muscat Stock Exchange (MSX) next week.
Schlumberger Oman is among three ‘anchor investors’ that have made “irrevocable commitments” to subscribe to the offer at the maximum price when the public subscription opens on February 20, 2023. Together with the Saudi Omani Investment Company and Royal Court Affairs, the three anchor investors have committed to subscribing to a total of 150.959 million shares, representing 40 per cent of the total number of shares offered by Abraj for public subscription.
The respective share allocations to the anchor investors are as follows: Saudi Omani Investment Company (a wholly owned entity of the Public Investment Fund of the Kingdom of Saudi Arabia) – 75.479 million shares or 20 per cent of the offer size for anchor investors; Royal Court Affairs – 37.739 million shares (10 per cent), and Schlumberger Oman – 37.739 million shares (10 per cent).
In all, around 377.398 million shares, equivalent to 49 per cent of the total issued share capital of Abraj, are being made available via the Offering. It will be launched on February 20, 2023 in two parallel offerings: (a) 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; and (b) 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.
According to Abraj’s prospection, 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.
Upon the conclusion of the IPO, the equity structure of Abraj Energy is expected to be as follows: Saudi Omani Investment Company 9.8 per cent; Royal Court Affairs 4.9 per cent; and Schlumberger Oman 4.9 per cent. The parent company OQ E&P (wholly owned subsidiary of OQ Group) will retain 51 per cent of the issued share capital.
Earlier this month, Abraj Energy entered into a memorandum of understanding (MoU) with Schlumberger Oman regarding their intention to enter into a strategic partnership agreement after the completion of the Offer. The proposed pact will focus on supporting Abraj’s “expansion and diversification of its portfolio, including its energy transition journey”, the company noted in its prospectus. Parent company OQ E&P has also agreed to support the appointment of a Schlumberger nominee to the Board at the 2023 AGM.
More recently, OQ signed an agreement with the Saudi Omani Investment Company (SOIC) to offer 20 per cent of Abraj’s shares as part of the IPO.
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