Riyadh – Mubasher: Drilling operator ADES Holding Company is set to offer 30% of its issued share capital to the public through an initial public offering (IPO) and list its shares on the Main Market of the Saudi Exchange (Tadawul).

The firm, which is headquartered in Al Khobar, aims to create opportunities for investors to participate in one of Saudi Arabia’s most prominent sectors.

ADES Holding’s IPO includes 338.71 million ordinary shares through selling a mix of 101.61 million existing shares and 237.10 million newly issued shares, according to the official data by the firm.

Furthermore, 100% of the offer shares will be allocated to institutional investors, while 10% will be clawed back and offered to retail investors.

Chairman of ADES Holding, Ayman Abbas, commented on the IPO by saying: “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."

Abbas noted that the company has grown since its establishment from a local driller operating predominantly in North Africa to one of the largest drilling operators in the MENA region.

The Saudi giant has a fleet of 85 rigs with its operations spanning seven countries, including India where three rigs will be operating in 2023.

Abbas concluded: “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.”

As of 30 June 2023, ADES Holding registered a total backlog of SAR 27.60 billion.

During the first half (H1) of 2023, the company generated SAR 1.98 billion worth of revenue from contracts with customers, when compared with 2022 when it reported SAR 2.50 billion.

CEO of ADES Holding, Mohamed Farouk, 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.”

Farouk added: “Our IPO offers international and retail investors a highly compelling opportunity to invest in a leading global drilling operator with a growing international footprint.”

On 21 June 2023, the Capital Market Authority (CMA) gave its nod for ADES Holding’s application to register its share capital and trade on Tadawul.

Important Dates to Consider

ADES Holding officially announced the intention to go public on 28 August 2023.

On 10 September 2023, the company will disclose the price range and the institutional book-building period.

On 18 September, the firm will announce the final IPO price after the institutional book-building process is complete.

Meanwhile, the final prospectus will be unveiled on 19 September.

On 20-21 September 2023, the retail subscription period will take place.

On 28 September, ADES Holding will make the announcement of the final allocation of the IPO shares.

If there is any refund of excess subscription amounts, the company will disclose it on 3 October 2023.