ALBAWABA – Shareholders in oil and gas driller Ades International Holding, including the Saudi Public Investment Fund (PIF), will be selling a combined 30 percent stake in the company, possibly in September, according to Bloomberg.
Saudi Arabia’s sovereign wealth fund, PIF, along with major shareholders ADES Investments Holding Ltd. and Zamil Group Investment Ltd. took the business private back in 2021. The deal valued the company back then at about $516 million, Bloomberg reported.
However, the announced sale will take place through a local Initial Public Offering (IPO) that could raise about $1 billion, according to the New York-based news agency.
Bloomberg reported that ADES was going to go public with an IPO earlier in March this year but decided to postpone - Shutterstock
The final offer price will be announced on September 18, but a specific date has not been disclosed.
Overall, the offering will consist of 338.7 million shares; or a 30% stake. This includes the issuance of 237.1 million new shares through a capital increase, according to a statement on Monday, carried by Bloomberg.
The outlook for stocks has brightened with a 14 percent rally in the benchmark Tadawul index since March lows after earnings and relatively stable oil prices boosted optimism.
EFG Hermes, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Saudi National Bank Capital are working on IPO.
So far this year, Saudi Arabia has been relatively slow to kick off its usual IPO extravaganza. Less than $900 million has been raised through IPO listings in the kingdom this year, an 82 percent drop from last year, data compiled by Bloomberg show.
In the neighboring United Arab Emirates, there have been almost $4 billion worth of listings, according to the data.
