The UAE Ministry of Economy & Planning has given the Founders’ Committee of Aabar Petroleum Investments Company PJSC (under incorporation) (“Aabar”) approval for raising the capital by AED 50 million.
The company will now have a capital of AED900 million, an increase of AED50 million. Forty five per cent of the capital, AED405 million, has already been placed by Founders which closed Monday 14 March.
The balance of the capital, AED 495 million, will be open to public subscription. The shares are open to UAE Nationals and UAE companies only and are being offered at a nominal value of AED 1 with an additional 2 fils as subscription fees per share. Following its official incorporation, Aabar will be listed on the Abu Dhabi Securities Market.
Commenting on the announcement, Chairman of the Founders’ Committee, Mr. Sohail Al Mazrui, said: “By allowing us to increase the capitalization of Aabar, the Ministry has granted us license to ensure that we can create the largest public pan-Arab oilfield services company. We are bullish about the oil and gas industry and the increase in capital will provide investors with a chance to mirror our views by investing in Aabar.”
With a distinguished track record in leading IPOs and in developing the UAE capital markets, The National Investor is acting as financial advisor, lead manager, and book runner for Aabar.
Commenting on the capital increase, Dr. Karim El Solh, Chief Executive Officer, The National Investor, said: “The extra AED50 million will provide more capacity for Aabar to capitalize on the excellent investment opportunities currently available in the oil and gas sector.”
From its base in Abu Dhabi, Aabar will be acquiring existing companies in the oil and gas services sector and with their own fleet of offshore and onshore rigs. The objective of Aabar will be to invest in commercial and industrial projects in the oil and gas industry with a primary focus on drilling and related oilfield services inside and outside the UAE.