Oil driller ADES Holding Company, backed by Saudi's Public Investment Fund (PIF), has announced its intention to proceed with an initial public offering (IPO) to raise $1 billion and list its shares on the Saudi Exchange’s Main Market.
The IPO comprises an offer of 338,718,754 ordinary shares, representing 30 per cent of the company’s issued share capital (after the increase) through the sale of a mix of existing shares and newly issued shares.
The offer shares will be listed and traded on the Saudi Exchange’s Main Market following the completion of the IPO and listing formalities with the CMA and the Saudi Exchange.
The offer shares will be offered for subscription to individual investors and institutional investors, including Participating Parties outside the US in "offshore transactions" in accordance with Regulation S under the US Securities Act of 1933, as amended.
A maximum of 338,718,754 shares, representing 100 per cent of total offer shares, to be initially allocated to participating parties.
A maximum of 33,871,875 ordinary shares, representing 10 per cent of the total offer shares, will be allocated to individual subscribers. Individual subscribers must, at the time of subscription, have an active stock portfolio at a Capital Market Institution associated with the receiving agent being subscribed through, otherwise subscriptions will be rendered void and the amounts paid will be refunded.
The final offering price will be determined at the end of the book-building process.
Ayman Abbas, Chairman of ADES, commented: "Since inception, ADES has grown from a local driller operating predominantly in North Africa to one of the largest drilling operators in the Mena region with a fleet of 85 rigs and operations spanning seven countries, including India where three rigs will be operating in 2023.
"We are now present in the most attractive drilling markets globally and partner of choice for the largest and most reliable energy suppliers around the world. Our IPO will support us in continuing to deliver growth and cement our position as the leader in the jackup drilling market in Saudi Arabia and globally."
Mohamed Farouk, CEO of ADES, said: "ADES’ IPO on the Saudi Exchange marks an important milestone for the company and is a key step in realising our ambitious growth strategy. Our extensive track record of operational excellence and successful growth, underpinned by our high-quality client relationships, resilient business model and solid backlog, means we are well positioned to deliver strong returns to shareholders."