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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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Israel's Shekel and Bonds Slide as Gaza Ceasefire Buckles

New Israeli Shekel banknotes are seen in this picture illustration taken November 9, 2021. REUTERS/Nir Elias/Illustration/File photo
New Israeli Shekel banknotes are seen in this picture illustration taken November 9, 2021. REUTERS/Nir Elias/Illustration/File photo
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20
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Israel's Shekel and Bonds Slide as Gaza Ceasefire Buckles

New Israeli Shekel banknotes are seen in this picture illustration taken November 9, 2021. REUTERS/Nir Elias/Illustration/File photo
New Israeli Shekel banknotes are seen in this picture illustration taken November 9, 2021. REUTERS/Nir Elias/Illustration/File photo

Israel's currency fell alongside its bonds and stock market on Tuesday as a wave of deadly airstrikes by its military in Gaza threatened the complete collapse of an already fragile two-month ceasefire with Hamas.

Concerns about both the humanitarian and economic costs of a return to intense fighting spiked as Israel's resumption of bombing of Gaza, which it said was a "preemptive offensive" to try to force the release of its remaining hostages, prompted anger from Hamas.

Israel's shekel dropped as much as half a percent against both the dollar and euro, while many of its government bonds, which suffered a wave of rating downgrades last year due to the war, had their biggest falls in over a month, Reuters reported.

Ronen Menachem, chief markets economist at Mizrahi Tefahot Bank, said a resumption in the conflict could see further falls in the shekel and a renewed rise in Israel’s bond market risk premium.

"The market will react based on whether this is perceived as a defined and limited operation or the opening of a broader campaign," he said.

Israel's Prime Minister Benjamin Netanyahu said he had instructed the military to take Tuesday's "strong action" in response to Hamas's refusal to release the remaining 59 hostages it holds following its October 7, 2023 attacks and its rejection of other ceasefire proposals.

The Palestinian militant group accused Netanyahu of breaching the ceasefire deal and jeopardizing efforts by mediators to secure a permanent truce.

Negotiating teams from Israel and Hamas had been in Doha as mediators from Egypt and Qatar sought to bridge the gap between the two sides after the end of an initial phase in the ceasefire, in which 33 Israeli hostages and five Thais were released in exchange for some 2,000 Palestinian prisoners.