PIF-backed Ades Holding’s order book hits $76bn

Reuters/Ahmed Yosri

Saudi oil and gas driller Ades Holding set the final price for its initial public offering (IPO) at the top-end at SAR 13.50, implying a valuation of SAR 15.242 billion ($4.06 billion).

The institutional book-building process was 62.7 times oversubscribed, while the order book stood at SAR 286.853 billion ($76.49 billion).

The Public Investment Fund-backed company is expected to raise about $1.22 billion from selling more than 338.72 million existing and new shares or 30 percent of its issued share capital post-capital increase.

• PIF-backed Ades Holding aims to raise $1.2bn from IPO
• Saudi’s PIF hires banks for $1bn IPO of oil and gas drilling firm
• Middle East IPO drive likely to cool in second half of 2023

The retail subscription will run from September 26 to 28. The final share allocations are expected no later than October 4.

The shares will be listed and traded on the Saudi Exchange, but no date has been finalised.

Ades is the second company to seek a flotation on the Saudi bourse since the summer after domestic auto rental company Lumi priced its IPO at the top of its range earlier this month.

Headquartered in Khobar, Ades operates a fleet of offshore and onshore rigs across the Middle East, North Africa and India. Its key clients are Saudi Aramco, Kuwait Oil Company and North Oil Company in Qatar.

Selling shareholders PIF, Ades Investments Holdings and Zamil Group Investment will collectively sell 101,615,626 existing shares in proportion to their shareholding. Ades will also issue 237,103,128 new shares.

Ades operates 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.

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

The oil and gas driller reported SAR1.98 billion in total revenue from customer contracts in the first half of 2023 and has a total backlog of SAR27.6 billion as of June 30, 2023.