Saudi PIF, holders to offer 30% stake in oil driller ADES IPO

Saudi Arabia’s sovereign wealth fund, ADES Investments Holding and Zamil Group Investment plan to sell shares in oil and gas driller Ades International Holding in a local initial public offering (IPO), set to be one of the kingdom’s biggest this year.

The offering will consist of 338.7 million shares, or a 30 per cent stake in the company, which will include the issuance of 237.1 million new shares through a capital increase, according to a statement on Monday.

The price range will be announced September 18 and the final offer price will be announced after a book-building process.

The Public Investment Fund (PIF) teamed up with the major owners of Ades to take the business private in 2021, in a deal valuing the company at about $516m. Ades, which provides oil-and-gas drilling and production services in the Middle East and North Africa, has since grown through acquisitions.

Saudi Arabia IPO activity

The company had initially planned to go public in the first half of the year but decided to hold off for a suitable time, Bloomberg reported in May.

Usually one of the GCC region’s biggest and busiest listings markets, Saudi Arabia has had a relatively slow start to the year.

Less than $900m has been raised through listings in Saudi Arabia this year, an 82 per cent drop from a year ago, data compiled by Bloomberg show.

The outlook for stocks has brightened with a 14 per cent rally in the benchmark Tadawul index since March lows after earnings and relatively stable oil prices boosted optimism.

In the neighbouring UAE, there has been almost $4bn worth of listings, according to the data.

EFG Hermes, Goldman Sachs Group, JPMorgan Chase & Co. and Saudi National Bank Capital are working on the IPO.

Read: Lulu to raise $2.7bn ahead of possible IPO
IPO, Saudi Arabia, Tadawul, Ades International Holding, Public Investment Fund, Gulf Business