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Omani energy services provider eyes potential IPO

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The process of listing four OIA-affiliated entities on the Muscat exchange through IPOs will commence during the current quarter.

Abraj Energy Services, an Omani state-owned oil and gas field services provider, is looking at launching an initial public offering (IPO), as the Sultanate looks to develop the revamped Muscat Stock Exchange (MSX).

The company, which is a subsidiary of state investment vehicle OQ, said in a press statement it is “currently reviewing the possibility of gaining a listing on the MSX, the timing and size of the potential transaction are under consideration and subject to necessary regulatory approvals”.

Abraj provides a wide range of services including drilling and workover rigs, as well as fracturing, cementing and coiled tubing services. It currently employees around 2,000 people, 93 percent of whom are Omani nationals.

The company’s IPO ambitions come as it is set to take part in the upcoming MSX roadshow, to be held from September 5-6 in Muscat. 

“The Investor Roadshow is the biggest event of Oman’s new rebranded stock exchange. The roadshow aims at attracting the attention of the global investment community towards the listed companies at MSX and informing the global fund managers about the latest developments and growth prospects in the market,” the exchange said in a press statement.

MSX has performed well in recent months, outperforming its Gulf peers in July. The Muscat exchange gained 9.9 percent last month, followed by Qatar (up 9.7 percent), Saudi Arabia (up 5.9 percent), Dubai (up 3.6 percent) and Abu Dhabi (up 3.1 percent), according to Kuwait-based Kamco Investment.

At the same time, total net profits of companies listed on MSX grew 4.6 percent in the to RO388.7m in the first half of 2022, more than the combined profits for the whole of 2021.

A report published by Oman News Agency found that 74 MSX-listed companies made profits, while 24 companies recorded net losses for the first half of 2022.

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Abraj Energy Services, an Omani state-owned oil and gas field services provider