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.
