PIF-backed driller set for Riyadh’s biggest IPO this year

Saudi Arabia’s Ades International Holding is set to list in Riyadh, a deal that’s set to be the kingdom’s largest initial public offering this year.

The Public Investment Fund, ADES Investments Holding Ltd and Zamil Group Investment Ltd plan to sell shares in the listing, according to a statement on Monday. The offering could raise about $1 billion, Bloomberg has reported.

The IPO 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. A book-building process will run from September 10 until September 14 and the final offer price will be announced on September 18, it said.

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

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.

Saudi Arabia has had a relatively slow start to the year. Less than $900 million has been raised through listings in the kingdom 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 UAE, there have been almost $4 billion worth of listings, according to the data.

EFG Hermes, Goldman Sachs Group Inc., JPMorgan Chase & Co. and SNB Capital are financial advisors and global coordinators for the IPO.