Renaissance to launch $500m London float

Oman's Renaissance Services oilfield services unit Topaz Energy and Marine will launch a $500m (£310m) London listing to fund expansion plans and repay existing debt facilities, it said.

The initial public offering will include an over-allotment option of existing shares of up to 15 percent of the total global offer, the company said in a statement.

The statement did not provide a range for pricing but Renaissance's Topaz Energy and Marine stake is expected to be above 51 per cent after the IPO, it said in its 2010 annual report.

The deal is subject to approval by Renaissance shareholders at its annual general meeting on March 28.

As part of its growth strategy, Dubai-based Topaz plans to spend $2.2bn to $2.5bn between 2011 to 2013 to acquire 75 vessels for its fleet.

"The next few years are expected to see significant growth in the sectors in which we operate and will also offer opportunities to expand into new offshore areas," Topaz Chief Executive Fazel A. Fazelbhoy in the statement.

"This transaction will provide us with the financial resources to maximise this potential."

The company plans to focus expansion in deep-water operating environments such as West Africa and Brazil.

The Gulf's IPO market has suffered after the global financial crisis dampened investor appetite for regional offerings, forcing some firms to look at London as an alternate destination.

Global ports operator DP World has been eyeing a dual listing on the London exchange unhappy with its market valuation on Nasdaq Dubai.

Topaz – one of the biggest oil services companies in the Middle East – is the top holding in Renaissance's portfolio of companies. Muscat-listed Renaissance has operations mainly in Oman and calls itself a "multinational holding company" offering services to the oil and gas industry.

JPMorgan Cazenove and Bank of America are leading the London-based flotation.