Skip to content Skip to Search
Skip navigation

PIF-backed oil and gas driller to float 30% on Saudi bourse  

By Pramod Kumar
Ades Holding plans to sell 338.72 million shares Reuters
Fitch does not expect any changes to Public Investment Fund's status, ownership and control over the medium term

Oil and gas driller Ades Holding, which is backed by Saudi Arabia’s Public Investment Fund, has announced plans to proceed with an initial public offering (IPO) on the Saudi Exchange.

The share sale comprises 338.72 million ordinary shares, resulting in a free float of 30 percent after the sale of a mix of existing and newly issued shares through a capital increase.  

The company will also issue 33.87 million new shares to be allocated to employees as part of a long-term incentive scheme.

The final pricing will be announced on September 18, 2023.

The group has operations across the Arab region, including Saudi Arabia, Kuwait, Qatar, Egypt, Algeria and Tunisia. Operations in India will start in 2023 on the back of already awarded contracts. 

Ades has an aggregate fleet of 85 rigs in seven countries, including three rigs that will be operating in India, 36 onshore drilling rigs, 46 jackup offshore drilling rigs, two jackup barges, and one mobile offshore production unit.

The company reported SAR1.98 billion ($528 million) in total revenue from customer contracts in the first half of 2023 and has a total backlog of SAR27.6 billion ($7.4 billion) as of June 30, 2023. 

“We are now present in the most attractive drilling markets globally. 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.

Mohamed Farouk, chief executive of Ades, added that the IPO offers international and retail investors a “compelling opportunity” to invest in a leading global drilling operator with a growing international footprint.

Latest articles

STC wants to consolidate the mobile tower market

STC approves PIF purchase of telecom company

Shareholders of Saudi telecom giant STC have approved plans to create a new telecommunications infrastructure company in which the Public Investment Fund will have a 51 percent stake valued at SAR8.7 billion ($2.3 billion).  Under the deal, the STC-owned Telecommunication Towers Co. Limited (Tawal) will become a PIF subsidiary through a merger with Golden Lattice […]

UAE markets Hong Kong

UAE capital markets partner with Hong Kong exchange

The Hong Kong Stock Exchange (HKSE) has added the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) to its roster of recognised marketplaces. The move opens the door for UAE-based companies to pursue secondary listings on one of Asia’s premier financial markets. It also follows the inclusion of the Saudi Exchange (Tadawul) […]

Person, Worker, Adult

Aramco and PIF invest in Saudi-Chinese steel venture

Saudi Aramco and the Public Investment Fund have doubled their investment in a steel plate joint venture with a Chinese company to $500 million. The two Saudi companies each own 25 percent shares in the new venture in Ras Al Khair industrial city, Bloomberg reported, quoting a statement published on the Chinese stock exchange. Chinese […]

Car, Transportation, Vehicle

Dubai Taxi to pay $43m dividend despite profit drop

Dubai Taxi Company, a subsidiary of the emirate’s transport regulator, has approved a dividend payout of AED159 million ($43 million) for the first half of 2024 despite a marginal 1 percent increase in net profit. Net earnings reached AED187.4 million in the first six months of the year, compared to AED186.3 million at the same […]