Topaz Energy and Marine plans $500 million London IPO

Dubai-headquartered offshore services provider Topaz Energy and Marine is planning to raise $500 million in a London Stock Exchange IPO.  a fleet of approximately 100 offshore support vessels, Topaz is a wholly owned subsidiary of Renaissance Services SAOG, a publicly traded company on the Muscat Securities Market, Oman.

Topaz has a strong market position in both the Caspian and MENA (Middle East and North Africa), two key oil and gas exploration, development and production regions.

Topaz Marine deploys offshore support vessels through its Topaz Marine Caspian and Topaz Marine MENA operating segments. Its fleet has grown from 62 OSVs  in January 2008, to its present 100 through a combination of commissioning new vessels, acquiring individual existing vessels, and acquiring fleets or fleet owners. The average age of its vessels is 6.6 years,

Topaz intends to apply net proceeds from the IPO towards the financing of its future growth and expansion strategies, including the growth of the Topaz fleet through the acquisition of vessels and/or vessel operators.

Topaz says it aims to add approximately 75 vessels to its fleet between 2011 and 2013 (including 10 vessels that were under construction or contract for delivery as at 31 December 2010 and not including any vessel disposals that may take place between 2011 and 2013) through a combination of commissioning new vessels and acquiring existing vessels, existing fleets or fleet owners. It aims to increase the proportion of its fleet with deep/harsh-water capability from approximately 16 per cent. as at 31 December 2010 to approximately 30 per cent. by the end of 2013. Topaz expects the acquisition of these additional vessels to be spread approximately evenly over the period 2011 to 2013.

Topaz believes the fragmented nature of the OSV market in the MENA region will provide opportunities for consolidation.

In its expansion plans Topaz is eyeing West Africa and further development of its operations in Brazil. It plans to deploy modern vessels in West Africa, a market it believes is increasingly dominated by an aging OSV fleet thus increasing opportunities for the provision of replacement vessels. In Brazil, Topaz  says it “will continue to evaluate potential strategic partnership and joint venture opportunities, particularly with well-positioned industry participants, including shipyards.”

March 16, 2011