Drilling for Dollars

Drilling for Dollars

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  • Sources have revealed that ADES International Holding, has postponed its intended initial public offering until the second half of this year. The company had initially planned to commence assessing interest in the offering in March, but opted to delay it, as per insiders who requested anonymity as the details have not been made public. They added that the deal cannot be completed before a long public holiday at the end of June due to time constraints.
  • According to sources, ADES is seeking to ensure that the timing is appropriate for its IPO, considering that Middle Eastern markets have lost some of their enthusiasm from last year. As per Bloomberg News, the deal could potentially raise approximately $1 billion, which would make it one of the larger listings planned in the kingdom this year. However, details such as the timing and size of the IPO are still being discussed and could be subject to changes. 

Why it matters

In 2021, Saudi Arabia's Public Investment Fund and major shareholders acquired ADES, a company that provides oil and gas drilling and production services in the Middle East and North Africa, for about $516 million. ADES has since expanded through acquisitions and currently operates 84 onshore and offshore rigs in several markets. Despite remaining busier than most other markets in terms of listings, Gulf markets have slowed considerably compared to last year.


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