Saudi Arabia’s oil and gas drilling major Arabian Drilling Co (ADC), which plans to float 30% of its share capital in IPO, has set the price range for the IPO at SR 90 to 100 ($24-$26.6) per share, according to HSBC Saudi Arabia, an advisor to the offering.
The total offer is expected to be between $641 million and $721 million, implying a market capitalisation at listing between $2,136 million to $2,373 million, ADC said in a statement.
The drilling company said last week it will sell existing shares representing 19.89% of its share capital, and issue new shares representing 10.11%.
The offering will be split into 26.7 million ordinary shares, representing 30% of ADC’s share capital.
This consists of a secondary offering of 19.89% of the company’s total share capital through the sale of 17.7 million existing shares by current shareholders, TAQA and Services Pétroliers Schlumberger, and a primary offering of 10.11% through the issuance of 9 million new shares.
Following the completion of the participating entities tranche, the offer shares will also be offered to Saudi Arabian nationals, foreign residents in the kingdom and GCC nationals Initially, 100% of the offer shares will be provisionally allocated to the Participating Entities. This may be reduced to 24,030,000 shares (representing 90% of the total) depending on the level of demand by individual investors. The final number of offer shares allocated to the Participating Entities will be accordingly adjusted based on subscription from individual investors, the company said.
Bidding and book-building period for participating entities, including qualified foreign financial institutions starts on 28 September 2022 and ends on 5 October 2022.
