ADES Holding Company (ADES), based in Saudi Arabia, has secured an impressive $76.5B (approximately SAR 286.9B) in orders for its initial public offering (IPO) on the Saudi Exchange, marking it as the country’s most significant listing of the year.
ADES has fixed the final offer price for the IPO at SAR 13.50 per share, indicating a market capitalisation of SAR 15.2B upon listing.
This level of demand, as stated by the oil and gas drilling and production services provider, translates to a subscription coverage rate of 62.7 times.
Meanwhile, the retail subscription window is open for three days, spanning from September 26 to September 28, according to Gulf Business.
ADES IPO: number of shares on offer
In the IPO, ADES has put forth 237.1 million new shares, while existing shareholders, including the Public Investment Fund, ADES Investments Holding, and Zamil Group Investment, are divesting approximately 101.6 million shares.
“The sale shares represent 9 per cent and the new shares represent 21 per cent of the company’s issued share capital upon completion of the offering, totalling 30 per cent of the issued share capital,” the company said in an earlier statement.
The company boasts a fleet of 85 rigs and conducts operations in seven nations, including India, where it plans to have three rigs in operation during the current year, as detailed on its website.
In the initial half of this year, its revenue derived from customer contracts amounted to SAR 1.98B (equivalent to $528M).
Furthermore, it achieved a profit of SAR 397.6M in the year 2022.
