ADES Holding Company, a leading oil and gas drilling and production services provider in the Middle East and North Africa region, announced today that it intends to proceed with an initial public offering (IPO) and the listing of its shares on the Saudi Exchange’s Main Market. The IPO is expected to raise significant capital for the Company, which could fetch more than $1 billion, Reuters reported last November citing two sources familiar with the matter. The IPO is also expected to increase the Company’s visibility and attract new investors.
The IPO is scheduled to take place in September 2023. The offer will comprise an offer of 338,718,754 ordinary shares, representing 30% of the Company’s issued share capital (after the increase) through the sale of a mix of existing shares and newly issued shares. The Offer Shares will be listed and traded on the Saudi Exchange’s Main Market following the completion of the IPO and listing formalities with the Capital Market Authority (CMA) and the Saudi Exchange.
The Offer Shares will be offered for subscription to individual investors (Individual Subscribers) and institutional investors (Participating Parties), including Participating Parties outside the United States in “offshore transactions” in accordance with Regulation S under the US Securities Act of 1933, as amended (the “Securities Act”).
A maximum of 338,718,754 shares, representing 100% of total Offer Shares, will be initially allocated to Participating Parties. The financial advisors (as defined below) may, in coordination with the Company, reduce the number of shares allocated to Participating Parties to 304,846,879 shares, representing 90% of total Offer Shares, to accommodate for Individual Subscriber demand.
A maximum of 33,871,875 ordinary shares, representing 10% of the total Offer Shares, will be allocated to Individual Subscribers. Individual Subscribers must, at the time of subscription, have an active stock portfolio at a Capital Market Institution associated with the Receiving Agent being subscribed through, otherwise subscriptions will be rendered void and the amounts paid will be refunded.
The final Offering price will be determined at the end of the book-building process.
The Company appointed EFG Hermes Saudi Arabia (“Hermes”), Goldman Sachs Saudi Arabia (“Goldman Sachs”), J.P. Morgan Saudi Arabia (“J.P. Morgan”) and SNB Capital Company (“SNB Capital”) as its financial advisors (collectively referred to as the “Financial Advisors”) and global coordinators. In addition, the Company has appointed SNB Capital Company as Lead Manager (the “Lead Manager”) in relation to the Offering. The Company has also appointed EFG Hermes Saudi Arabia, Goldman Sachs, J.P. Morgan, SNB Capital, GIB Capital, HSBC Saudi Arabia, Al Rajhi Capital and Saudi Fransi Capital as bookrunners and underwriters (the “Underwriters”) in relation to the Offering.
Arab National Bank (“ANB”), Alrajhi Bank (“Alrajhi”), Riyad Bank and The Saudi National Bank (“SNB”) have been appointed as receiving entities (collectively, the “Receiving Entities”) for the Individual Subscribers’ tranche.
Lazard Financial Advisory (“Lazard”) has been appointed as Independent Financial Advisor to the Company.
