Eng Ayad bin Ali al Balushi, Chairman of the Board of Directors of Abraj Energy Services, announced that the final offer price of Abraj shares was set at RO 0.249 per share, to be the highest level of the previously announced offering price range due to the high demand from both individuals and institutions. He revealed that the volume of subscription in the company's shares amounted to more than RO 790 million, where the subscription was covered by 870 per cent, which exceeds the offered amount by more than eight times thus making the IPO of Abraj is the largest in the history of the Sultanate of Oman.
According to Al-Balushi's press statements, approximately 40,000 individual subscribers contributed RO 246 million to purchase over one billion shares. Meanwhile, the institutional subscription was oversubscribed by more than 21 times, with 132 participating institutions locally and internationally contributing more than RO 507 million within just 12 days. This impressive institutional subscription, with investment funds, regional, and international institutions accounted for a significant 46%, a clear indication of the confidence and strategic foresight of these entities in recognizing the potential of this lucrative investment opportunity. The remaining 54% of the institutional subscription was accounted for by Omani institutions.
The Chairman of the Board of Directors of Abraj concluded his speech by saying: “All the success that accompanied the IPO of Abraj Energy Services confirms the strong expertise and the strategic decision-making necessary to reach this important and historical moment, not only at the level of the company, but the positive impact of that decision on our national economy. He expressed his thanks to all the investors who participated in the IPO, in addition to the stakeholders in the IPO process. Abraj will soon be among the top 10 companies listed on the Muscat Stock Exchange based on its market value.”
Azzan al Abdullatif, Head of the IPO Transaction Team, noted that the positive participation rates in the public subscription of the company were a testament to the high level of investor confidence in Abraj's investment value. This national project was made a success with efficiency and competence, making it the largest in the history of the Sultanate of Oman, he added.
Meanwhile, Shaikh Abdullah Salim al Salmi, Executive President of the Capital Market Authority, said the amount collected from the subscription process exceeded eight folds of the offered shares for the second category at RO 246 million while the amount of shares offered for small investors was RO 29.6 million which represents 35% of the total offering.
Al Salmi pointed out that the allocation of the shares of Abraj Energy was approved based on distribution of the minimum limit to the small shareholders category at 4,500 shares and 0.1121% of the remaining shares for each subscriber, and allocation of 4.62% proportionately to each subscriber in the first category represented by institutional investors. He said the allocation results would guarantee that the number of investors who will get 100% of the subscribed amounts is 19,6000 subscribers at 49% of the total subscribers of the retail investors whose number is 39 thousand subscribers.
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