The offering is expected to give the Dubai-based oilfield services unit a market capitalization of $1.7 billion, Topaz chief executive Fazel Fazelbhoy said, which would likely make firm eligible for inclusion in the FTSE 250.

Topaz intends to use the proceeds of the initial public offering (IPO), due to be completed in early April, to fund its expansion and repay existing debt facilities.

The firm plans to focus on offshore expansion in deep-water operating environments such as West Africa and Brazil, Fazelbhoy said, adding that deep-water markets offered better margins and less competition than shallow market operations.

“The era of easy oil is over,” he said.

“The most exciting finds are coming increasingly offshore.”

Fazelbhoy said the company, which plans to spend $2.2 billion to $2.5 billion by 2013 to acquire 75 vessels for its fleet, was focussed on organic growth and would consider making an acquisition.

“If it fits the profile, it will certainly be on the cards,” he said.

Last month, Renaissance said it might divest part of its stake in a secondary offering, but it expected to maintain a majority holding in Topaz after the IPO.

The listing will include an overallotment option of existing shares of up to 15 percent of the total size of the offering, Fazelbhoy said, and the company might also have a “modest secondary offering.”

The deal, being run by J.P. Morgan and Bank of America Merrill Lynch, is subject to approval by Renaissance shareholders at its annual general meeting on March 28.

Fazelbhoy said the company did not see any impact on business from the political upheaval in the Middle East as the bulk of its operations are in the Caspian Sea or the UAE, which has maintained stability despite the turmoil in the region.

Topaz — one of the biggest oil services companies in the Middle East — is the top holding in Muscat-listed Renaissance’s portfolio of companies.

“It’s a classic case of unlocking value from investment in a subsidiary,” said Joice Mathew, head of research at Muscat-based United Securities.

Renaissance bought Topaz, which last year had revenues of $408 million and profits of $70 million, through a share swap deal in 2005.