- ADES Holding Co. and its main shareholders, including Saudi Arabia’s sovereign wealth fund, are aiming to raise up to 4.6 billion riyals ($1.2 billion) in its initial public offering (IPO), marking the largest IPO in Saudi Arabia this year. The price range for shares has been set at 12.5 riyals to 13.5 riyals, which could value the company at as much as 15.2 billion riyals. A total of 30 percent of the company's stake will be offered, with 237.1 million new shares being sold by ADES Holding Co. and 101.6 million shares being sold by the Public Investment Fund, ADES Investments Holding Ltd., and Zamil Group Investment Ltd. Book-building for institutional investors will continue until Thursday, with retail buyers able to place orders from September 26 to September 28. The final offer price is scheduled to be announced on September 20.
- The Public Investment Fund (PIF) partnered with major owners to privatize ADES in 2021, 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 expanded through acquisitions and serves major clients like Saudi oil giant Aramco, Kuwait Oil Company, and North Oil Company in Qatar.
Why it matters
ADES Holding's major clients, including the Saudi oil giant Aramco, Kuwait Oil Company, and Qatar's North Oil Company, collectively make up over 95% of the company's backlog as indicated in its prospectus. While the Saudi Stock Exchange, typically a highly active listing market in the Gulf region, experienced a slower start in 2023, with data showing that the value of newly listed shares on the Saudi market, Tadawul, was less than $900 million, marking an 82% decline compared to the same period the previous year.