Abraj Energy Services held an informative session to highlight the Initial Public Offering (IPO) at the branch of Oman Chamber of Commerce and Industry (OCCI) in Nizwa on Thursday.
Saif bin Nasser al Tewani, Board Member of the OCCI and Chairman of the OCCI’s branch in Al Dakhiliyah Governorate said, "The Abraj Energy Services IPO represents a paradigm shift in investment within the Sultanate of Oman. Abraj is one of Oman’s leading companies operating in the oil and gas sector. It is distinguished by high reliability and profitability, which attracts investors from Oman and abroad."
“Investing savings in such projects maximises funds while enhancing sustainable growth within the Muscat Stock Exchange. It also enables local companies to move forward with projected expansion plans for the benefit of our national economy,” he added.
Speaking on the occasion, Saif al Hamhami, Chief Executive Officer of Abraj Energy Services, said, "Abraj specialises in oil and gas well drilling operations and well maintenance services. The drilling services account for 85% of our revenues and has enabled the company to possess the highest market shares of drilling rigs in the Sultanate of Oman with almost 30%."
He added, “Our company has the finest modern and advanced drilling fleets in the Middle East and is the largest Omani company that provides cementing services. Abraj owns the biggest laboratories in the Sultanate of Oman and has a customer base par excellence. It is the first local company in the MENA region to provide integrated Hydraulic fracturing services. Furthermore, Abraj has established its position as a leading company in developing unconventional deep gas wells."
al Hamhami also elucidated that Abraj recorded an outstanding performance during the financial year ending on 31st December 2021 with revenues of almost OMR 125 million (USD 322 million). The company achieved a compound annual growth rate of 23 percent during the period between 2007 – 2021.
Adding to the dialogue, he said “Furthermore, Abraj has been a profitable company for over 12 years and has been distributing dividends to its shareholders for more than 10 years. It achieved record profits with an increase of more than 100% during the period of 2019 – 2021, despite the market fluctuations and the COVID-19 pandemic."
Al Hamhami indicated that the company seeks to continue distributing cash dividends from its net profits at high rates up to 85%. He illustrated that the distribution of dividends will include the shareholders subscribing in this IPO. He further explained that the company will put 377,398,000 of its shares for sale, which is equivalent to 49% of its total share capital.
Speaking on the categories of subscription, al Hamhami said, "Abraj offers its shares for subscription in two parallel categories. The first of the categories is allocated to major investors and is directed to major, corporate and founder investors in Oman, in addition to international investors outside the United States of America.
The second category is allocated to small investors and is directed for individual investors in the Sultanate. The shares of this second category will be offered at a maximum discounted price of 224 baizas per share, calculated at a maximum price of 249 baizas with a discount of 10 per cent.
The session was followed by a Q&A session where the subscription mechanism was discussed in detail.
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