Retail subscription begins today to 33.87 mln ADES shares on TASI

Logo of ADES International Holding Co.

Individual investors will start today, Sept. 26, subscribing to 33.87 million shares of ADES International Holding Co. at SAR 13.50 each (SAR 1 par value), as set by the book-building process. 

The retail subscription will run for three days till Sept. 28, the company added.

In June, the Capital Market Authority (CMA) approved the application received from ADES to float 338.72 million shares of its post-IPO capital on the Saudi Exchange (Tadawul).

The offer will comprise 101.62 million shares held by ADES Investment Holding Ltd., Public Investment Fund (PIF) and Zamil Investment Co. (according to their current ownership stakes). This is in addition to the issuance of 237.10 million new shares through capital hike. 

The institutional offering closed last week after being 63x covered. The total value of orders during the book-building process reached nearly SAR 286.9 billion.

ADES’s initial public offering (IPO) is the sixth share sale on the main market (TASI), following that of Morabaha Marina Financing Co. (MRNA) and Al Mawarid Manpower Co. on May 28, as well as the offerings of Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma) and First Milling Co. (First Mills) on June 6, prior to Lumi Rental Co. on Sept. 12.

Last year, 18 companies went public on TASI, namely East Pipes Integrated Company for Industry, Scientific & Medical Equipment House Co. (Equipment House), Elm Co., Aldawaa Medical Services Co., Al Masane Al Kobra Mining Co. (AMAK), Nahdi Medical Co., Saudi Home Loans Co. (SHL), Retal Urban Development Co., Alamar Foods Co., Naqi Water Co., Arabian Drilling Co., Power and Utility Company for Jubail and Yanbu (MARAFIQ), Perfect Presentation for Commercial Services Co. (2P), Americana Restaurants International Plc (Americana Restaurants), Riyadh Cables Group Co., AlSaif Stores for Development & Investment Co. (Alsaif Gallery), Saudi Aramco Base Oil Co. (Luberef) and Alinma Hospitality REIT Fund.

Company Highlights:

ADES is a Saudi closed joint-stock company, established in December 2022 and headquartered in Al Khobar.

ADES operates as a drilling and exploration services provider in the oil and natural gas sector in the MENA region.

The company is 54.5% owned by ADES Investment Holding, while PIF and Zamil Investment hold a 35.5% and 10% stake, respectively.

ADES operates in seven countries around the world: Saudi Arabia, Kuwait, Qatar, Egypt, Algeria, Tunisia and India. It will commence operations in India this year under pre-award contracts.

The services provider recently implemented its strategic plan by moving its headquarters to Saudi Arabia, where the majority of the group's operations, shareholders, banks and its main customer (Saudi Aramco) are located.

ADES’ main clients include Saudi Aramco in the Kingdom, Kuwait Oil Company in Kuwait and North Oil Company in Qatar, representing in aggregate more than 95% of the group's total backlog as of Dec. 31, 2022, and 82% of its customer contract revenue for 2022.

The company owns a total fleet of 85 rigs in seven countries (of which three will be used in India). This includes 36 onshore rigs, 46 offshore rigs (of which four are leased), two raised barges and a marine mobile production unit. 

The company directly and indirectly owns 23 subsidiaries. It directly and wholly owns one subsidiary, ADES International. ADES International directly and indirectly owns all other subsidiaries in the group, namely five core subsidiaries and 17 non-core subsidiaries in Saudi Arabia, the UAE, Egypt, Kuwait, the Cayman Islands, Cyprus, Bermuda and Liberia.

For More IPOs