Markets Saudi oilfield services firm Arabian Drilling eyes $710m IPO By Reuters October 12, 2022 Arabian Drilling Company The retail subscription period for the IPO will start on October 18. Arabian Drilling Company, a Saudi oilfield services firm, said on Tuesday it will price its initial public offering at SAR 100 a share and is set to raise SAR 2.67 billion ($710.58 million). The final price is at the top end of a price range announced last month, which would value it at SAR 8.9 billion. Arabian Drilling, which operates 45 rigs and has been drilling since 1964, is selling 30 percent of the company and received SAR 162 billion in orders from institutional investors, it said in a statement. The deal is the latest in a string of IPOs from the Gulf that has continued this year in defiance of global market trends. “Global investors have come to recognise the significant and integral role we play – and will continue to play – in the oil and gas value chain in the Kingdom,” CEO Ghassan Mirdad said in the statement. “The demand for our services remains high, especially given the elevated commodity price environment and concerns around energy security as a result of the current macro-political and economic landscape,” he said, adding the firm plans to expand further in the Gulf Arab countries. The offering comprises a primary offering of 10.11 percent of Arabian Drilling, or nine million new shares, and a secondary offering of 19.89 percent of the company’s total share capital, or 17.7 million existing shares, held by The Industrialization & Energy Services Company (TAQA) and Services Petroliers Schlumberger SA. The retail subscription period will start on October 18 and end the following day. The final allocation of shares will be announced on October 25 and the first day of trading is to be determined. HSBC Saudi Arabia, Goldman Sachs Saudi Arabia and SNB Capital are joint financial advisers, bookrunners and underwriters for the IPO.
