Oil and gas driller ADES International has announced plans to proceed with an initial public offering (IPO) on the Saudi Exchange.
The company, backed by Saudi Arabia’s sovereign wealth fund, said the public share sale will comprise around 338.7m ordinary shares, resulting in a free float of 30% after the sale of a mix of existing and newly issued shares.
The company will publish its price range plans on September 10 and a final price on September 18. The subscription period will start on September 20 with the announcement of the final allocation of shares on September 28.
ADES International was listed on the London Stock Exchange in 2017. In 2021, Saudi Arabia’s Public Investment Fund (PIF) partnered with ADES’ major shareholders – ADES Investments Holding and Zamil Group Investment – to take the firm private in a deal worth $516m.
PIF, ADES Investments Holdings and Zamil Group Investment will collectively sell around 101m existing shares in proportion to their shareholding.
Ades has 85 rigs in seven countries of which 36 onshore units, 46 jackups, two jackup barges and one mobile offshore production unit (MOPU). The company has 33 jackups contracted in Saudi Arabia and has recently moved into India, where it has signed up to provide three rigs.
“The IPO will support us in continuing to deliver growth and cement our position as the leader in the jack-up drilling market in Saudi Arabia and globally,” noted ADES chairman Ayman Abbas.
“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,” added Mohamed Farouk, the CEO of ADES.