Renaissance confirms Topaz float pulled

Oman’s Renaissance Services has confirmed it has abandoned its planned $500m flotation of Topaz Energy in London until market sentiment improves.

The listing, due to be priced by banks yesterday, is the latest casualty of political unrest across the Middle East that has seen market volatility and oil prices soar.

In a statement the company said it had received a “considerable degree of support” from investors but blamed the “increasingly uncertain investment climate for new issues caused by international events” for pulling the listing.

“It remains our intention to list the company when the climate is right. In the meantime we will continue to implement our strategy of growing the business in what continue to be fundamentally strong markets,” said Renaissance chairman Samir Fancy.

Topaz, a Dubai-based oilfield services company, was due to raise the capital to fund expansion plans and repay its debt but Fancy said the company was well financed for the immediate future.

“The company’s organic growth plan is fully funded. In 2010 Renaissance invested $100m new equity in the business and $100m Tier 2 capital through a mezzanine debt instrument. Topaz will continue its 2010 to 2012 investment programme uninterrupted," he said.

"It remains a matter of choosing the appropriate time to proceed with the IPO during the 12 month period authorised by Renaissance shareholders.”

Advisers expect the group to try a London issue again in the near future once markets have settled.