PIF-Backed Driller Set for Riyadh’s Biggest IPO This Year

(Bloomberg) -- Saudi Arabia’s Ades International Holding is set to list in Riyadh, a deal that’s set to be the kingdom’s largest initial public offering this year.

The Public Investment Fund, ADES Investments Holding Ltd. and Zamil Group Investment Ltd. plan to sell shares in the listing, according to a statement on Monday. The offering could raise about $1 billion, Bloomberg has reported.

The IPO will consist of 338.7 million shares, or a 30% stake in the company, which will include the issuance of 237.1 million new shares through a capital increase. A book-building process will run from Sept. 10 until Sept. 14 and the final offer price will be announced on Sept. 18, it said. 

The PIF teamed up with the major owners of Ades to take the business private in 2021, in a deal 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 since grown through acquisitions.

The company had initially planned to go public in the first half of the year but decided to hold off for a suitable time, Bloomberg reported in May.

Usually one of the Persian Gulf’s biggest and busiest listings markets, Saudi Arabia has had a relatively slow start to the year. Less than $900 million has been raised through listings in the kingdom this year, an 82% drop from a year ago, data compiled by Bloomberg show. 

The outlook for stocks has brightened with a 14% rally in the benchmark Tadawul index since March lows after earnings and relatively stable oil prices boosted optimism.

In the neighboring United Arab Emirates, there have been almost $4 billion worth of listings, according to the data.

EFG Hermes, Goldman Sachs Group Inc., JPMorgan Chase & Co. and SNB Capital are financial advisors and global coordinators for the IPO.

(Updates with bank roles in last paragraph.)

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