RIYADH: ADES Holding Co., partially owned by Saudi Arabia’s Public Investment Fund (PIF), has reportedly set the final price for its initial public offering on the Kingdom’s main exchange at SR13.50 ($3.60) per share.
According to a Reuters report, this pricing implies a valuation of $4.06 billion for the oil and gas driller.
ADES Group has not officially confirmed the Reuters claim. Instead, the company informed Arab News that the final IPO price would be disclosed once approved by Saudi Arabia’s Capital Markets Authority.
The report noted that the company is expected to raise about $1.22 billion from the sale of more than 338.7 million existing and new claims, or about 30 percent of its issued share capital post the increase.
In addition, ADES will allocate 33.87 million new shares to its employees and subsidiaries as part of the IPO. These units will be held as treasury shares until they are transferred to the workers in accordance with the provisions of the long-term incentive scheme.
In June, Saudi Arabia’s CMA granted regulatory approval for ADES Holding to proceed with this IPO.
According to the ADES website, retail subscription of the IPO will run from Sept. 26 to 28, while the announcement of final allocations of the offer shares will be on Oct. 4.
In 2021, the PIF joined hands with ADES Investments Holding and Zamil Group Investment to take the company private. That deal valued ADES at $516 million at the time.
After announcing its intention to float shares in August, ADES CEO Mohamed Farouk said the development would further accelerate the company’s growth trajectory.
“Our IPO offers international and retail investors a compelling opportunity to invest in a leading global drilling operator with a growing international footprint,” said Farouk at that time.
Amid uncertainties, the Saudi market has witnessed a rise in IPO activities.
Ernst & Young recently issued a report highlighting the Kingdom’s leadership in the Middle East and North Africa region in IPOs.
In the second quarter, Saudi Arabia witnessed four listings on Tadawul’s primary market, collectively raising an impressive $800 million.
Additionally, seven listings on the parallel market Nomu garnered proceeds of $100 million, reinforcing The Kingdom’s prominence in the IPO arena.