Renaissance Services' board has approved plans to raise new capital to help fund expansion, the Omani oil services company said on Tuesday.

The new capital, which will be worth up to 50 million rials ($129.87 million), will be raised through a privately-placed quasi-equity instrument open to both new and existing investors, Renaissance said in a statement to the Muscat bourse.

No timing for the issue, which still requires the approval of both regulators and shareholders, was given. Bank Muscat has been appointed as financial adviser for the offering.

The cash will be used for near-term expansion, through its Topaz Marine and Engineering subsidiary, in the Gulf Arab region and the Caspian Sea, as well as to strengthen Renaissance's balance sheet, it added.

Renaissance said in November that it was looking to raise $380 million in the loan market for Topaz by the end of the year to help refinance existing obligations.

Topaz, which pulled a $500 million London listing in March amid valuation concerns and regional unrest, uncovered fraud worth $2.9 million in August. -Reuters