Saudi PIF-backed ADES Holding Company, a leading oil and gas drilling and production services provider in the region, said its $1.2 billion IPO was oversubscribed 9.8 times by retail investors with over 1.31 million participating.

 

The retail subscription process, comprising a maximum of 33,871,875 shares representing 10% of the total Offer Shares, had commenced on September 26 and ended at 2pm on September 28. 

 

It witnessed participation of 1,307,676 subscribers, indicating a coverage of 9.83 times, with a total demand of SR4.5 billion ($1.2 billion). 

 

Pro-rata basis

Individual Subscribers will receive a minimum of 10 shares each, while the remaining shares will be allocated on a pro-rata basis for the remaining demand with an average allocation factor of 6.4951%.

 

The Final Offer Price for the Offering has been set at SR13.50 per share, implying a market capitalisation of SR15.24 billion ($4.07 billion) at listing. 

 

The book-building process for institutional investors (Participating Parties) ended with a subscription coverage of 62.7 times, with recorded orders of approximately SR286.85 billion ($76.49 billion). Based on the results of the retail subscription process, the shares allocated to Participating Parties will be reduced to 304,846,879 Offer Shares, representing 90% of the total Offering.

 

The IPO of ADES comprised an offer of 338,718,754 ordinary shares, representing 30% of the company’s issued share capital (post capital increase) through the sale of a mix of existing shares and newly issued shares.-- TradeArabia News Service