Tuesday 25, September 2018 by Bloomberg

Oman's Renaissance mulls $1.5 billion Topaz Energy IPO

 

Goldman Sachs Group and Morgan Stanley are advising on the share sale, which could take place next year in London.

Oman’s Renaissance Services, a service provider to the oil and gas industry, is considering an initial public offering (IPO) for its Topaz Energy & Marine unit.

Renaissance, which has a market capitalisation of about $379 million, could seek a valuation of about $1.5 billion for the Dubai-based business, the people said.

Valuation and location are still being discussed and no final decisions have been made, the people said. Renaissance may also choose to retain its stake in the division for now, they said. Renaissance had abandoned a London IPO of the unit in 2011 and considered selling it a year later. Topaz raised $203 million in May to refinance its debt.

A representative for Renaissance could not immediately be reached. Spokesmen for Goldman Sachs and Morgan Stanley declined to comment. A representative for Topaz pointed to a statement by Chairman Samir Fancy in the 2017 annual report and declined to comment further.

“Topaz and its shareholders believe that it is the right time to consider the company’s strategic options in relation to growth and capital enhancement,” Fancy wrote at that time. “All options are being considered, including inorganic and capital market transactions such as an offering of securities,” though no decisions have been made, he said.

First-half earnings before interest, taxes, depreciation and amortisation rose 33 per cent from a year earlier to $77 million, according to Topaz. The offshore support vessel and marine logistics company said a key reason for the upswing was a turnaround of its African business in a buoyant market.

Standard Chartered Private Equity holds a minority stake in the company.

Features & Analyses

Economics Adapting to a new era

  Abdullah Al-Fozan, Chairman of KPMG MESA and KPMG Saudi Arabia, provides an exclusive commentary on the Kingdom’s business… read more