Saudi oil field services company, Arabian Drilling, drew $43 billion (162 billion riyals) in orders for its initial public offering (IPO), Bloomberg reported.
The firm, which is partly held by French oil field services company, Schlumberger NV, has set the final offer price at 100 riyals ($26.6) per share.
Arabian Drilling, which operates a total 45 rigs, is selling 30 percent of the company.
The company is set to raise $710 million from the IPO, at the top end of a price range announced last month, after a book-building process for institutional investors.
The IPO will be open to retail investors on October 18 until October 19, with HSBC Saudi Arabia, Goldman Sachs Saudi Arabia and SNB Capital as joint financial advisers, bookrunners and underwriters for the IPO.
Over the last few months this year, the Middle East has been a hotspot for IPOs, despite stock selloffs and fears of recession. High oil prices and investor inflows catalysed deals in Saudi Arabia and UAE.
“Global investors have come to recognise the significant and integral role we play – and will continue to play – in the oil and gas value chain in the Kingdom,” Arabian Drilling chief executive officer Ghassan Mirdad said in a statement.
Mirdad added: “Looking ahead, we also have plans to grow and expand further into the GCC, where we are also witnessing strong demand increases.”
Within hours, Arabian Drilling’s offering was fully covered across the price range of 90 riyals and 100 riyals per share.
A third of the IPO will be new shares, with proceeds to be used to “scale up onshore and offshore fleet,” Bloomberg said, adding that the proceeds will also be used to expand Arabian Drilling’s operation in the GCC.
*With inputs from Bloomberg
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