Topaz Energy & Marine, the Dubai-based oil and gas services company, has decided not to proceed with an initial share sale in London, citing market conditions.
Renaissance Services SAOG, Topaz's parent, had planned to sell some of its stake in the company along with newly created shares in a sale that aimed to raise about $500 million (Dh 1.83 billion).
"Given the increasingly uncertain investment climate for new issues caused by international events, the board of Renaissance has decided not to proceed until market sentiment is more settled," Renaissance said in a statement today.
Topaz planned to raise the cash to fund as much as $2.5 billion in spending to expand its fleet of ships, Chief Executive Officer Fazel Fazelbhoy said on a conference call March 16.
The company's "organic growth plan" is fully funded, Oman-based Renaissance said in the statement to Muscat bourse.
Renaissance said it still intended to list Topaz shares on an exchange "when the time is right" and within the 12 months shareholders granted the board to pursue a sale.
The company said its investment plan through 2012 won't be interrupted and didn't provide details on how many ships it planned to buy.
Using the share sale proceeds, Topaz had planned to add 75 vessels to its fleet from 2011 to 2013, reaching a total of 165 ships, to expand the range of services it offers, Fazelbhoy said earlier this month.
The company operates mainly in the Caspian Sea and provides services in Brazil and Africa.
*Bloomberg News
