ADES Holding debuts on Tadawul today

Logo of ADES Holding Co.

ADES Holding Co. will start trading on the Saudi Exchange (Tadawul) today, Oct. 11, at SAR 13.50 a share under the symbol the symbol 2382 and ISIN Code SA55SG6H5716.

Shares will trade with ±30% daily and ±10% static price fluctuation limits in the first three days. From the fourth trading day onwards, the daily price fluctuation limits will revert to +/-10%, while the static price fluctuation limits will no longer apply.

ADES is the sixth company to debut on Tadawul this year, following Lumi Rental Co. on Sept. 25,  Al Mawarid Manpower Co.  on June 19, and Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma) on June 20, Morabaha Marina Financing Co. (MRNA) on June 21 and First Milling Co. on June 22, besides the listing of Alinma Hospitality REIT Fund.

Last year, the Main Market witnessed 17 IPOs, namely, East Pipes Integrated Company for Industry, Scientific & Medical Equipment House Co., Elm Co., Al-Dawaa Medical Services Co., Al Masane Al Kobra Mining Co., Nahdi Medical Co., Saudi Home Loans Co., 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.'s (Alsaif Gallery) and Saudi Aramco Base Oil Co. (Luberef).

ADES will bring the total number of Tadawul-listed companies to 213, excluding 18 REITs.

The company offered 338.72 million shares, or 30% of its capital, at SAR 13.50 per share. Out of the offered shares, 90% were allocated to participating parties and 10% to retail investors.

The retail tranche was 983.8% covered, while the tranche of participating parties was 62.7x subscribed.

A total of 1.31 million retail investors submitted applications for shares worth about SAR 4.5 billion.

A minimum of 10 shares were allocated per individual subscriber, and the remaining shares were distributed pro rata, with an allocation factor of 6.4951%. 

Company Profile

Incepted in 2022, ADES Holding is a Saudi mixed, closed joint-stock company 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 35.5% and 10% of the company, respectively. 

ADES Holding 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 previously awarded 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 Holding's main clients include Saudi Aramco in the Kingdom, Kuwait Oil Co. in Kuwait and North Oil Co. 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.

ADES Holding owns a fleet of 85 rigs in seven countries (of which three will be used in India), including 36 onshore rigs and 46 offshore rigs (of which four are leased). 

It directly and indirectly owns 23 subsidiaries. The company directly and wholly owns one subsidiary, ADES International, which, in turn, owns all other subsidiaries of the group – five core and 17 non-core units. 

It operates through its branches and subsidiaries incorporated in various countries, including Saudi Arabia, Kuwait, UAE, Egypt, the Cayman Islands, Bermuda, Cyprus, and Liberia.