ADES Holding, the Saudi Arabia-headquartered oil and gas drilling and production services provider, is launching an initial public offering (IPO) and listing its shares on the Saudi Exchange
On 21 June 2023, the Capital Market Authority (CMA) approved the company’s application for registering its share capital and offering 338,718,754 ordinary shares of its total capital by way of sale of 101,615,626 existing shares (the sale shares) by ADES Investments Holding Ltd., the Public Investment Fund (PIF) and Zamil Group Investment Ltd, and the issuance of 237,103,128 new shares for public offering through a capital increase. The sale shares and new shares represent 30% of the issued share capital.
The company will also issue 33,871,875 new shares to the employees of the company and its subsidiaries.
The Offering proceeds will be distributed to the selling shareholders, with the remaining proceeds used to reduce part of the Group’s outstanding debt and finance the Group’s strategy to achieve its growth objectives.
The final pricing of the offer shares will be announced on 18 September 2023.
Ayman Abbas, chairman of ADES, commented, “Since inception, ADES has grown from a local driller operating predominantly in North Africa to one of the largest drilling operators in the MENA region, with a fleet of 85 rigs and operations spanning seven countries, including India. We are now present in the most attractive drilling markets globally and partner of choice for the largest and most reliable energy suppliers around the world. Our IPO will support us in continuing to deliver growth and cement our position as the leader in the jackup drilling market in Saudi Arabia and globally.”
Mohamed Farouk, CEO of ADES, commented, “ADES’ IPO on the Saudi Exchange marks an important milestone for the company and is a key step in realising our ambitious growth strategy. Our extensive track record of operational excellence and successful growth, underpinned by our high-quality client relationships, resilient business model and solid backlog, means we are well positioned to deliver strong returns to shareholders. Our IPO offers international and retail investors a highly compelling opportunity to invest in a leading global drilling operator with a growing international footprint.”