ADES Holding issues prospectus for 30% IPO on Tadawul

Logo of ADES International Holding Co.

ADES International Holding Co. issued today, Sept. 5, its prospectus to float 30% of its 338.7 million shares capital, or 39.5% of pre-initial public offering (IPO) capital, on the Saudi Exchange (Tadawul).

On June 21, the Capital Market Authority (CMA) gave the greenlight for ADES Holding to register and offer 338.72 million shares on Tadawul. The offer will comprise 101.62 million shares owned by ADES Investment Holding Ltd., Public Investment Fund (PIF) and Zamil Investment Co. — as per their current ownership stakes, in addition to the issuance of 237.10 million new shares through a capital hike.

ADES Holding 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 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 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 Holding's 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.

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

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