- ADES Holding Co.'s IPO is anticipated to be priced at the upper end of the range, raising $1.2 billion and marking Saudi Arabia's most significant listing of the year. The offering is set to price at 13.50 riyals per share, with substantial oversubscription at this level, as per terms of the deal revealed by Bloomberg. The final pricing is scheduled for announcement on September 20.
- This strong investor demand showcases Saudi Arabia's attractiveness as a global IPO hub over the past two years and could potentially stimulate the government to proceed with its plans for a secondary offering of Saudi Aramco shares. At the upper end of the range, ADES would achieve a valuation of 15.2 billion riyals ($4.1 billion). In the IPO, the oil and gas drilling company will issue 237.1 million new shares, while existing shareholders, including the Public Investment Fund, ADES Investments Holding, and Zamil Group Investment, will offer about 101.6 million shares. This represents 30% of the company's total stake being offered.
Why it matters
According to analysts, ADES' listing will significantly boost Saudi Arabia's current IPO proceeds, which stand at just $901 million. Saudi Arabia has witnessed a resurgence in IPO activity since March, the benchmark Tadawul index has surged approximately 12% during this period, supported by strong earnings and relatively stable oil prices.
