Saudi Arabia-backed jack-up drilling rig company ADES Holdings is expected to price its initial public offering at the top of the range and raise $1.2bn.
The company is expected to price its shares at SAR 13.50 ($3.60) each, according to terms of the deal seen by Bloomberg.
ADES Holdings is selling 237.1m new shares in the IPO, while its shareholders – Saudi Arabia’s Public Investment Fund, ADES Investments Holding and Zamil Group Investment - are selling about 101.6m shares. The total stake being offered is 30% of the company.
Pre-offering ADES Investments Holding currently has a 54.5% stake in the company, while PIF has a stake of 35.5% and Zamil Group Investment 10%.
After completion of the IPO, the selling shareholders will collectively have 67% of the company’s shares, with ADES Investments Holding’s stake reduced to 36.5%.
ADES Holdings was previously listed in London but was taken private in 2021 by PIF and its major shareholders in a deal valuing the company at $516m.
Today the company is one of the largest drilling rig operators in the Middle East and North Africa region with a fleet of 85 rigs, according to its website.
“We are now present in the most attractive drilling markets globally,” said ADES Holdings chairman Ayman Abbas.
“Our 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.”
Its major clients include Saudi oil giant Aramco, Kuwait Oil Company and North Oil Company in Qatar, which accounted for over 95% of ADES’ backlog as of the end of last year, its prospectus shows.
ADES intends to use the proceeds from the IPO to reduce part of its indebtedness and fund its growth strategy as well as for general corporate purposes.
EFG Hermes, Goldman Sachs Group, JPMorgan Chase & Co and SNB Capital are financial advisers and global coordinators for the IPO.