Saudi Arabia’s oil and gas drilling contractor Arabian Drilling Company, announced its intention to float 30 percent, or 26.7 million shares, in an IPO on the Saudi main index .
Arabian Drilling said it will sell existing shares representing 19.89 percent of its share capital, and issue new shares representing 10.11 percent, according to a bourse filing.
The final offer price will be determined following the book-building process between September 28 and October 5.
The company has a fleet of 45 rigs and claims a market share of 17 percent. It has a contract backlog of 8.2 billion riyals ($2.18 billion) as of 31 July 2022.
SNB Capital, Goldman Sachs Saudi Arabia, and HSBC Saudi Arabia are the book-runners and underwriters for the proposed IPO.
Saudi Arabia, which is the biggest regional market, raised $3.8 billion through 13 IPOs in Q1 2022, according to PwC, accounting for around 87 percent of the quarter’s proceeds.
The Arabian Drilling Company is looking for growth in the kingdom’s crude oil and natural gas production with the aim to meet the demand for hydrocarbons that it sees from the Middle East and globally.
Saudi Arabia is expected to account for 30 percent of total MENA hydrocarbon additions until 2030, the company said in the statement on the local stock exchange.
