MENA-focused drilling giant aims for $1 bln in IPO

ADES Holding Company has announced its intention to proceed with an IPO on the Saudi Stock Exchange with the aim of raising more than USD 1 billion, the MENA-focused drilling giant announced on Monday.

The planned IPO will put 338,718,754 ordinary shares on offer, which is 30% of the company’s issued share capital after issuance of 237,103,128 new shares and the company’s capital increase.

According to Reuters’ sources, the IPO could raise more than USD 1 billion.

ADES Holding Company operates in Saudi Arabia, Kuwait, Qatar, Egypt, Algeria, Tunisia and India. The company’s clients include energy players such as Saudi Aramco, Kuwait Oil Company, BP and Eni.

The company’s fleet consists of 85 rigs, including 36 onshore rigs, 46 offshore jackup rigs, two jackup barges and a mobile offshore production unit.

In H1 2023, the company made USD 528 million in total revenue from contracts with clients.

In 2021, Saudi Arabia’s Public Investment Fund partnered with the company’s major shareholders ADES Investment Holding and Zamil Group Investment with the intention of privatising the company.

At the time, the entity was valued at USD 516 million.

ADES Holding Company is headquartered in Al Khobar, Saudi Arabia.

“Our IPO will support us in continuing to deliver growth and cement our position as the leader in the jack-up drilling market in Saudi Arabia and globally,” said Ayman Abbas, chairman of ADES Holding Company.

According to British consultancy entity Ernst & Yonge, IPOs in the MENA region raised more than USD 5 billion in H1 2023, with the majority coming from Saudi Arabia and the UAE.