The Saudi Addis Oilfield Services IPO aims to raise up to 4.57 billion riyals ($1.22 billion) from the sale of 30% of the company’s shares in an initial public offering on the Saudi Stock Exchange.
The company, supported by the Saudi Investment Fund, announced today, Sunday, September 10 (2023) – according to a statement seen by the specialized energy platform – the marketing of its initial public offering, setting the price range for the share between 12.50 riyals ($3.33) and 13.50 riyals ($3.60). ).
On June 21, 2023, the Capital Market Authority approved the request of the Saudi Addis Oilfield Services Company to register its capital and offer 338.7 million ordinary shares, representing 30% of the company’s total capital, through the sale of 101.6 million ordinary shares of existing shares by Addis. Investment Holding, the Public Investment Fund, and Zamil Group Company (in proportion to their current shares), and issuing 237.1 million new shares, through a capital increase.
Addis share price
NCB Capital announced that the minimum number of shares that can be subscribed to for participating categories is 100,000 shares, while the maximum number is 56 million, 453,125 shares.
Participation in the Saudi Addis Oilfield Services IPO is scheduled to be limited to categories qualified to participate in the process of building the order book in accordance with the instructions for building the order book and allocating shares in initial offerings issued by the Capital Market Authority.
The final Addis share price will be determined after the completion of the order book building process, followed by the subscription process for the individual subscribers segment. The number of offering shares that will be initially allocated to the participating categories is 338 million 718 thousand and 754 shares, representing 100% of the total offering shares, with the final allocation taking place after the end of the individuals’ subscription period.
Addis shares offered for sale represent 9% and the new shares represent 21% of the issued capital upon completion of the offering. Totally equal to 30% of the issued capital, after selling a mix of existing and newly issued shares through a capital increase.
Excavator in one of Addis Company’s projects – archive
In the event that individual subscribers subscribe for all of the offering shares allocated to them, the financial advisors have the right to reduce the number of shares allocated to the participating categories to 304 million 846 thousand and 879 shares, representing 90% of the total offering shares.
The process of building the order book for the categories participating in the Addis Saudi Oilfield Services IPO begins today, Sunday, September 10, 2023, until 02:00 PM Mecca Time (11:00 AM GMT) on Thursday, September 14, 2023.
Saudi Addis also intends to issue 33.87 million new shares that will be allocated to the company’s employees and its subsidiaries, to be kept as treasury shares until their ownership is transferred to the employees in accordance with the provisions of a long-term incentive plan, according to a company statement viewed by the Specialized Energy Platform.
Individual subscribers must have an active portfolio at the time of subscription with one of the financial market institutions associated with the receiving party through which the subscription was made. Otherwise, the subscription will be considered canceled and the amounts paid will be returned.
Giant drilling machine operator
Addis International was listed on the London Stock Exchange in 2017, and in 2021, the Saudi Public Investment Fund cooperated with Addis’s main shareholders, Addis Investment Holding and the Zamil Group, to transform the company into a private company, and the deal valued the company at $516 million at the time.
Since its founding, Addis has evolved from a local drilling company operating mainly in North Africa to one of the largest drilling machine operators in the MENA region with a fleet of 85 drilling machines and operations spanning 7 countries; Including India, which will witness the operation of 3 rigs in 2023.
The company expects that the initial public offering will support its efforts to continue growth and consolidate its position as a leading operator in the raised drilling rig market in the Kingdom of Saudi Arabia and around the world.
Addis deals with the oil giant Saudi Aramco and Kuwait Oil Company, among other clients, and it also has joint projects with major international companies. Among them are the British oil company BP and the Italian company Eni.
Addis’ IPO comes within the framework of the Saudi government’s encouragement to list more state-linked companies and family businesses on the stock exchange to strengthen capital markets as part of reforms aimed at reducing the country’s dependence on oil revenues.
EY Consulting said that stock exporters in the Middle East and North Africa raised more than $5 billion in the first half of this year, with the largest portion coming from Saudi Arabia and the UAE.
Revenues from these operations were down 60% compared to the first half of last year, which was an exceptionally strong year for the initial public offering market in the Gulf region.
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2023-09-10 08:19:23
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