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ADES Holding Seeks to Raise $1.2b from IPO in Tadawul

ADES Holding Seeks to Raise $1.2b from IPO in Tadawul
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ADES Holding Seeks to Raise $1.2b from IPO in Tadawul

ADES Holding Seeks to Raise $1.2b from IPO in Tadawul

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.

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Aramco Chief Expects Additional Oil Demand of 1.3 Million bpd this Year

Saudi Aramco's Chief Executive Amin Nasser speaking in Davos 2025
Saudi Aramco's Chief Executive Amin Nasser speaking in Davos 2025
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Aramco Chief Expects Additional Oil Demand of 1.3 Million bpd this Year

Saudi Aramco's Chief Executive Amin Nasser speaking in Davos 2025
Saudi Aramco's Chief Executive Amin Nasser speaking in Davos 2025

Saudi oil giant Aramco's Chief Executive Amin Nasser said on Tuesday he sees the oil market as healthy and expects an additional 1.3 million barrels per day of demand this year.
Speaking to Reuters on the sidelines of the World Economic Forum in Davos, Nasser was responding to a question on the impact of US President Donald Trump's energy decisions, which could increase US hydrocarbon output.
Oil demand this year will approach 106 million barrels per day after averaging about 104.6 million barrels per day in 2024, he said.
“We still think the market is healthy ... last year we averaged around 104.6 million barrels (per day), this year, we're expecting an additional demand of about 1.3 million barrels ... so there is growth in the market,” he said.
Asked about US sanctions on Russian crude tankers, he said the situation was still at an early stage.
“If you look at the impacted barrels, you're talking about more than 2 million barrels,” he said. “We will wait and see how would that translate into tightness in the market, it is still in the early stage.”
Asked if China and India have sought additional oil volumes from Saudi Arabia on the back of the sanctions, Nasser said Aramco is bound by the levels the Kingdom's energy ministry allows it to pump.
“The Kingdom and the Ministry of Energy is always looking at balancing the market. They take that into account when they give us the target of how much we should put in the market,” he said.
In a Bloomberg television interview in Davos, Nasser said: “We still see good demand coming out of China.” The country, along with India, make up about 40% of the rise in global consumption and, “demand is increasing year on year.”
Nasser’s comments echo those he made back in October, saying he was bullish on China after a series of government stimulus measures aimed at reviving the economy.
Nasser also said that Aramco is working with MidOcean, an LNG firm in which it took a 51% stake, and “looking at expanding our position globally in LNG,” without giving details.