Saudi Arabia’s Ades International Holding is preparing to launch the kingdom’s largest initial public offering (IPO) this year, according to a report by Bloomberg.
The Public Investment Fund (PIF), ADES Investments Holding Ltd, and Zamil Group Investment Ltd is set to sell shares in the listing, the report said, adding that the IPO is expected to raise approximately $1 billion.
All you need to know about the ADES IPO
The IPO will feature 338.7 million shares, equivalent to a 30 percent stake in the company, and will include the issuance of 237.1 million new shares through a capital increase.
The book-building process is set to take place from September 10 to September 14, with the final offer price to be announced on September 18, Bloomberg said.
Ades International Holding, a provider of oil and gas drilling and production services in the Middle East and North Africa, had previously contemplated going public in the first half of the year but postponed the move.
The company’s value stood at approximately $516 million when the PIF, along with key Ades stakeholders, privatised the business in 2021.
Saudi Arabia’s IPO market has faced a sluggish year, with less than $900 million raised, marking an 82 percent drop compared to the previous year, according to Bloomberg data.
However, the outlook is improving, as the Tadawul index has surged 14 percent since its March lows, bolstered by favorable earnings and stable oil prices, the report said.
On the other hand, the UAE has witnessed a hike in IPO activity, with listings totaling nearly $4 billion, according to available data.
EFG Hermes, Goldman Sachs Group Inc., JPMorgan Chase & Co., and SNB Capital have reportedly been selected as financial advisors and global coordinators for the IPO, Bloomberg said.
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