Oil and gas driller ADES Holding, backed by Saudi Arabia's sovereign wealth fund, began marketing its initial public offering on Sunday, seeking 12.50 riyals ($3.33) to 13.50 riyals a share.
ADES plans to raise as much as 4.6 billion riyals ($1.2 billion) from the public-share sale.
The total stake being offered is 30% of the company.
ADES IPO is set to be Saudi Arabia’s biggest, according to Bloomberg.
The book-building process for this IPO is open from Sept. 10-14.
The public share sale would comprise 338.7 million ordinary shares, resulting in a free float of 30 percent after the sale of a mix of existing and newly issued shares.
The company is selling 237.1 million new shares in the IPO.
Selling shareholders PIF, ADES Investments Holdings and Zamil Group Investment will collectively sell 101.6 million existing shares in proportion to their shareholding.
ADES will also issue 237,103,128 new shares.
EFG Holding’s EFG Hermes, Goldman Sachs Group, JPMorgan Chase & Co., and SNB Capital are financial advisers and global coordinators for the IPO.
ADES is a leading oil and gas drilling and production services provider in the Middle East and North Africa region. It has a fleet of 85 rigs and operations across seven countries, including India where three rigs will be operating this year, according to its website.
The company’s revenue from contracts with customers reached SAR 1.98 billion in the first half of the year compared to SAR 2.5 billion during FY 2022.
The company’s total backlog as of 30 June 2023 is SAR 27.6 billion.
