Saudi PIF-backed ADES prices IPO at top end, implying over $4 billion valuation

Riyadh: Saudi oil and gas driller ADES Holding said on Wednesday it has set the final price for its initial public offering (IPO), implying a valuation of SR15.242 billion ($4.06 billion) for the Saudi sovereign wealth fund-backed firm.

Reuters reported last week that the IPO was expected to be priced at SR13.50 a share, the top-end of a previously announced range.

ADES confirmed the pricing for the IPO, saying it drew nearly $76.5 billion in orders from institutional investors.

The firm is expected to raise about $1.22 billion from the sale of more than 338.7 million existing and new shares or about 30 per cent of its issued share capital post-capital increase.

Reuters reported in November that the planned IPO could fetch more than $1 billion, citing sources close to the matter.

Institutional book-building has closed. Retail subscription runs from September 26-28. Final share allocations are expected no later than October 4. No date has yet been set for shares to begin trading.

ADES is the second company to seek a flotation on the Saudi Exchange since the summer after domestic auto rental company Lumi priced its IPO at the top of its range earlier this month.

Headquartered in the eastern Saudi city of Khobar, ADES operates a fleet of offshore and onshore rigs across the Middle East, North Africa and India. Its clients include state oil giant Saudi Aramco, Kuwait Oil Company and North Oil Company in Qatar.