Saudi-owned oil and gas drilling giant ADES Holding Company (ADES) has reported its set price range for its IPO. In a statement made by ADES, the latter stated that its price range will be between SAR 12.5 and SAR 13.5 per share for the offering. The latter would mean that the company could be targeting around $1.2bn in its IPO. The company has also stated the commencement of the institutional book-building period for Participating Parties. The price range for the IPO has been set between $3.33 (SAR 12.50) and $3.60 (SAR 13.50) per share. The institutional book-building period commenced on 10 September 2023 and will end on 14 September 2023.  The Capital Market Authority (CMA) already has sanctioned the registration and offering of the 338,718,754 ordinary shares by ADES on June 21 2023. This process encompasses the divestiture of 101,615,626 incumbent shares by stakeholders ADES Investments Holding, the Public Investment Fund (PIF), and Zamil Group Investment. Furthermore, 237,103,128 fresh shares will be introduced to the public through an augmented capital initiative.

The Saudi sovereign wealth fund Public Investment Fund (PIF) backed company is targeting a major expansion drive still, building also on its vast acquisition spree the last years. From being an Egyptian-based minor driller it has emerged as a one of the sector’s leading giants. In 2021 the company was taken private by ADES Investments Holding and Zamil Group Investment, in conjunction with the sovereign wealth fund PIF. At that time the company was valued at around $516 million. The current IPO valuation is not only supported by the ongoing growth strategy, but also due to the still vast attractiveness of the Kingdom’s IPO market. Ernst & Young recently released a report highlighting Saudi Arabia’s leadership in the Middle East and North Africa region in IPOs. At the Saudi stock exchange Tadawul in Q2 four new listings have been made on its primary market in Q2 2023, valued at $800 million. On the secondary market Nomu had seven new listings, valued at $100 million. The ADES IPO is expected to be a success, even that the company is still struggling to cope with the massive integration issues of the new rigs it has been able to acquire. The current management is still facing severe challenges, as maybe the growth has been too fast to handle.