Abraj Energy Services, the drilling unit of Oman’s state energy company OQ, raised about 94 million Omani rials ($244 million) from its initial public offering.
The company, which sold more than 377 million shares, equivalent to a 49 per cent stake, set the final offer price at the higher end of 249 baizas (65 cents) a share amid strong demand from regional, international and local investors.
The lower range of the initial share offer was 242 baizas.
The IPO, which is the country's biggest since the 2010 listing of telecom operator Nawras (Ooredoo Oman), was "heavily oversubscribed" and generated more than 790 million Omani rials ($2 billion) in bids, the company said on Tuesday.
The company's shares will start trading on the Muscat Stock Exchange on March 14., subject to it receiving regulatory approval.
Ahli Bank of Oman, EFG Hermes, National Bank of Oman are leading the IPO.
Abraj has a fleet of 25 drilling and five workover rigs. It controls a 29 per cent market share in Oman.
Its remit also includes well services, comprising fracturing, cementing and coiled tubing operations.
Abraj, which reported a full-year revenue of $323 million in 2021, has an order backlog of $1.5 billion for the period between 2023 and 2031.
The company's earnings before interest, taxes, depreciation and amortisation (ebitda) margin reached 37.5 per cent in the first nine months of last year.
The deal is the latest in a string of IPOs from the Gulf region, where economies have benefitted from higher oil and gas prices.
Brent crude, the benchmark for two thirds of the world’s oil, was trading at about $86 a barrel on Tuesday, after falling below $30 in 2020.
In October, Arabian Drilling Company, a Saudi Arabian oilfield services business, raised $712 million from the sale of a 30 per cent stake in an IPO amid strong interest from retail investors.
Adnoc Drilling, which is majority owned by Adnoc, was listed on the Abu Dhabi Securities Exchange in 2021.
In December, shares of Saudi Aramco Base Oil Company, better known as Luberef, began trading on the Tadawul stock exchange after it raised $1.32 billion in its IPO.
While capital markets in the US and Europe have slumped amid inflation woes and fears of a looming recession, equity markets in the GCC and broader Mena region have had a flurry of IPOs.
Last week, Adnoc raised about Dh9.1 billion ($2.5 billion) from the sale of a 5 per cent stake in its gas business, marking the world's largest listing so far this year after the Middle East registered 48 listings in 2022.
Middle East IPOs raised more than $23 billion in 2022, compared with $7.52 billion raised from 20 offerings in the previous year.
That was the highest share for the Gulf region after 2019, when Saudi Aramco went public in a $29 billion offering, the world’s largest.
Between announced and rumoured IPO plans, the GCC region is expected to float 27 to 39 companies this year, according to Kamco Invest.
More coverage from the Future Forum
War
Director: Siddharth Anand
Cast: Hrithik Roshan, Tiger Shroff, Ashutosh Rana, Vaani Kapoor
Rating: Two out of five stars
More on animal trafficking
The biog
Favourite car: Ferrari
Likes the colour: Black
Best movie: Avatar
Academic qualifications: Bachelor’s degree in media production from the Higher Colleges of Technology and diploma in production from the New York Film Academy
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Gulf Under 19s final
Dubai College A 50-12 Dubai College B
