Saudi-backed oil and gas driller Ades Holding has received regulatory approval for its Riyadh IPO. The 30% stake offering could raise around $1 billion, potentially making it one of the largest in the kingdom this year.
In 2021, the Public Investment Fund, along with significant stakeholders, collaborated to privatize Ades at an estimated valuation of $516 million. Ades, a company specializing in oil and gas drilling and production services in the Middle East and North Africa, has experienced subsequent expansion via acquisitions.
Why it matters
According to a Bloomberg report in May, the company initially planned to go public in the first half of the year but postponed the IPO to wait for a favorable market opportunity. While Saudi Arabia's stock market experienced a decline last year, the country is known for being one of the prominent and active markets for listings in the Persian Gulf. Despite the subdued market, recent debuts this week indicate that investor interest in IPOs remains robust.