Muscat – Abraj Energy Services, Oman’s leading oilfield services provider which launched its initial pubic offering (IPO) on February 20, will add 11 new drilling rigs to its fleet during the next five years as part of its expansion plans, the company informed on Wednesday.

Abraj organised an informative session at the Muscat Stock Exchange on Wednesday to highlight the IPO of its shares. During the session, the company expressed confidence in achieving the highest regional growth and providing attractive opportunities for investors.

As part of its growth plans, the company explained that 11 new drilling rigs will be added during the next five years, Abraj said in a press statement.

Abraj said it has been awarded a contract in Kuwait for a fixed duration of five years in addition to an optional additional period of two years. ‘By virtue of this contract, the company will provide three drilling rigs for this project, slated to commence in 2024. The new project will be added to the company’s operations record within drilling as well as well maintenance and services.’

Speaking at the informative session, Salah bin Abdullah al Harthi, general manager of business development at Abraj Energy Services, said, “The company recorded a compound annual growth rate of 23 per cent during the period of 2007–2021, supported by the growth of its fleet of drilling rigs. Abraj is a leading company in drilling services with a market share of 30 per cent approximately and is the first local company in the MENA region to provide integrated hydraulic fracturing services. Furthermore, our company has established its position as a leader in developing unconventional deep gas wells.”

Abraj said it currently hires more than 2,550 employees with an outstanding Omanisation rate of 93 per cent.

“Abraj is the biggest Omani company that provides cementing services and boasts laboratories that are the largest in the sultanate along with a customer bade parallel to none. The company made record profits with an increase of more than 100 per cent during the period of 2019–2021 despite the market fluctuations and adverse conditions, including the COVID-19 pandemic,” Harthi said.

With over 12 years of earning substantial operational profits, Abraj is one of the leading drilling companies in the world. The company has been distributing dividends to its owners for over ten years.

Harthi further explained that Abraj is distinguished by its high-profit margins operating in the same sector regionally and internationally. He clarified that the company started making profits and distributing dividends in 2011. It generated revenues of approximately RO125mn in 2021.

Abraj seeks to continue distributing cash dividends from its net profits at high rates that reach 85 per cent. Harthi noted that the distribution of dividends will include the shareholders subscribing to the IPO.

Through its IPO, Abraj is offering 49 per cent shares for public subscription in two parallel categories. The first category is allocated for major investors and will account for a maximum of 85 per cent of the total public offering. This is directed to major and corporate investors in Oman and international investors. The subscription price in the first category is set within the range of 242bz to 249bz per share.

The second category is allocated for small investors and accounts for no less than 15 per cent and no more than 35 per cent of the total public offering. It is directed towards individual investors in the sultanate. The shares of this second category will be offered at a maximum discounted price of 224bz per share, calculated at a maximum price of 249bz with a discount of 10 per cent.