Abraj shares list on MSX following successful IPO

Omani drilling services company Abraj Energy Services – a subsidiary of OQ – was formally listed on the Muscat Stock Exchange (MSX) on Tuesday, enabling the start of trading in the shares of the company – the first local energy firm to be listed on the Omani bourse.

Taking part in the listing ceremony were a number of dignitaries, including Abdulsalam bin Mohammed al Murshidi, President of the Oman Investment Authority (OIA), Mohammed bin Mahfouz al Ardhi, Chairman of the Muscat Stock Exchange, and a number of officials representing the stakeholders, interested parties and securities traders.

Abraj Energy recently completely a successful public subscription via an Initial Public Offering (IPO) as part of an exit plan announced earlier by parent holding organization - the Oman Investment Authority.

In remarks at the listing ceremony, Haitham bin Salem al Salmi, CEO of MSX, said the listing of Abraj Energy marked the start of a new chapter in the growth of the stock exchange in light of the maiden addition of an energy company into the exchange’s base of publicly traded companies.

Eng Ayad bin Ali al Balushi, Chairman of the Board of Abraj Energy Services Company, expressed his gratitude to all parties that supported the listing of the company, which garnered huge investor interest during the IPO. He added that the successful public subscription of Abraj Energy Services boded well for the success of other OIA-linked companies and affiliates lined up for divestment as part of the Authority’s exit strategy.

Abraj Energy Services received orders totaling RO 790 million – equivalent to an eight-fold oversubscription.

Following the listing of Abraj shares, the scrip gained 16 per cent in value during trading, local economist Mohammed Ali told the Observer. The stock closed at 291 baizas, which was up 16 per cent over the offer value. A total of 42 million shares worth RO 12 million were traded on the opening day. The MSX30 Index closed at 4,920.862 points – its highest performance in more than three years.