KHOBAR: Industrialisation and Energy Services Co (TAQA) plans to sell shares to the public before mid 2010, becoming the second Saudi energy services company to float its stock on the market.

“We are moving ahead with the (IPO) process preparations. We expect it to happen in the first half of 2010 ... which means in the first three or four months,” the company’s chairman Abdulaziz Al Jarbou said. “God willing our shares will be listed before (end-June, 2010),” he added on the sidelines of an energy conference.

The group has appointed Samba Financial Group as adviser and lead manager for the IPO. Jarbou could not say how much the group plans to raise, but the Saudi bourse watchdog, the Capital Market Authority, usually requires new market entrants to sell a minimum 30 percent.

The Saudi company has no connections to Abu Dhabi National Energy Co, also known as Taqa, which is 75 percent owned by the Abu Dhabi government. TAQA has also plans to raise its capital by more than 30 percent, from its current SR2bn ($533.3m), to finance current and future projects, Jarbou said without clarifying if the IPO will offer new shares or existing shares.

The company’s 2008 profit of SR132.8m ($35.4m) was down 13 percent from the previous year. Established in 2003, TAQA acts as a project developer and is involved in oil and gas exploration and drilling, geophysical surveys and provides industries and services that support oil and gas, metals, petrochemicals, electricity and water sectors.

It has a joint venture with France Air Liquide for the supply of industrial gases in the kingdom and has teamed up with Schlumberger to form Arabian Drilling Co, another joint-venture specialized in oil and gas drilling. It also has a 51 percent-stake in Arabian Geophysical and Surveying Co (ARGAS) while France CGG Veritas has the remainder.