ADES Prices IPO at Top End

An investor monitors a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia (Reuters)
An investor monitors a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia (Reuters)
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ADES Prices IPO at Top End

An investor monitors a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia (Reuters)
An investor monitors a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia (Reuters)

Saudi oil and gas driller ADES Holding said it has set the final price for its initial public offering (IPO), implying a valuation of $4.06 billion for the Saudi sovereign wealth fund-backed firm.

Last week, Reuters reported that the IPO was expected to be priced at SR13.50 a share, the top end of a previously announced range.

The oil and gas exploration company is offering 237.1 million new shares for subscription, while its shareholders, the PIF, ADES Investments Holding, and Zamil Group Investment, are selling about 101.6 million shares.

The firm is expected to raise about $1.22 billion from selling more than 338.7 million existing and new shares, or about 30 percent of its issued share capital post-capital increase.

ADES confirmed the pricing for the IPO, saying it drew nearly $76.5 billion in orders from institutional investors.

In November, Reuters reported that the planned IPO could fetch more than $1 billion, citing sources close to the matter.

Institutional book-building has closed. Retail subscription runs from Sept. 26-28. Final share allocations are expected by Oct. 4. No date has yet to be set for shares to begin trading.

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

ADES operates a fleet of offshore and onshore rigs across the Middle East, North Africa, and India. It is headquartered in Khobar, and its clients include Aramco, Kuwait Oil Company, and North Oil Company in Qatar.



Gold Extends Gains as Trump Tariffs Fuel Safe Haven Flows

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
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Gold Extends Gains as Trump Tariffs Fuel Safe Haven Flows

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo

Gold prices rose for a second straight session on Tuesday, but traded below the recent all-time highs, as uncertainty around US President Donald Trump's tariff plans continued to fuel economic growth concerns and safe haven flows into bullion.

Spot gold gained 0.6% at $2,913.79 an ounce as of 0714 GMT. It hit a record high of $2,942.70 last week.

US gold futures added 0.9% to $2,925.50.

"Trump's disruptive modus operandi, aggressive rhetoric and tariffs - whether actual or threatened - could unravel global trade and intricate supply chains," said Nikos Tzabouras, senior financial writer at trading platform Tradu, Reuters reported.

"With uncertainty surrounding the global economy and the broader geopolitical landscape in the Trump 2.0 era, gold is set to remain a natural beneficiary of risk-off flows and central bank buying."

Since taking office last month, Trump has swiftly redrawn the global trade battlefield with a series of tariffs, while plans are already in motion for sweeping reciprocal tariffs, aimed squarely at any nation that taxes US products.

"Gold continues to benefit from the uncertainty surrounding the US. government's tariff policy. Central bank buying should also continue to provide support, even if there is no new data on this," Commerzbank analysts said in a note.

The market's focus has now shifted to the US Federal Reserve's January meeting minutes due on Wednesday for clues into the central bank's interest rate trajectory.

"Price gains are also supported by growing expectations that the Fed will cut rates in 2025 - a sentiment that gained further traction among traders after last week's disappointing US retail sales figures," Ricardo Evangelista, senior analyst at brokerage firm ActivTrades, said.

Bullion benefits from geopolitical and economic uncertainties, as well as rising price pressures, but higher interest rates diminish the asset's allure.

Spot silver fell 0.9% to $32.50 an ounce. Platinum jumped 0.9% to $985.20 and palladium climbed 1.6% to $978.00.