Saudi Arabian drilling entity sets IPO price

Saudi Arabian drilling company ADES Holding Company has set the final price of its upcoming IPO, suggesting a valuation of USD 4.06 billion, Reuters reported on Wednesday.

ADES has confirmed that the pricing for the IPO will be set at USD 3.60 (SAR 13.50) per share.

The company has received almost USD 76.5 billion in orders from institutional investors, with retail subscriptions running from September 26 to September 28, 2023.

Final share allocations are expected to be finalised by October 4, 2023, and no date has yet been set for shares to begin trading.

The IPO ecompasses offering 338,718,754 ordinary shares, which is 30% of the company’s issued share capital.

The IPO is expected to raise around USD 1.2 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.

ADES Holding 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.

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.