DUBAI, Oct. 11 (Reuters) – Arabian Drilling Company, a Saudi oilfield services company, announced on Tuesday that it would price its IPO at 100 riyals per share, raising 2.67 billion riyals ($710.58 million).
The final price is at the high end of a price range announced last month that would take it to 8.9 billion riyals.
Arabian Drilling, which operates 45 rigs and has been drilling since 1964, is selling 30% of the company and securing 162 billion riyals in orders from institutional investors, it said in a statement.
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The deal is the latest in a string of Gulf IPOs that have continued this year despite global market trends.
“Global investors have recognized the significant and integral role we play – and will continue to play – in the oil and gas value chain in the Kingdom,” CEO Ghassan Mirdad said in the statement.
“Demand for our services remains high, especially given high commodity prices and energy security concerns due to the current macropolitical and economic landscape,” he said, adding firm plans to further expand in the Arab Gulf countries.
The offering includes a primary offering of 10.11% by Arabian Drilling, or 9 million new shares, and a secondary offering of 19.89% of the Company’s total share capital, or 17.7 million existing shares, by The Industrialization & Energy Services Company (TAQA) being held. and Services Petroliers Schlumberger SA
Retail subscription period begins October 18th and ends the following day. The final allotment of shares will be announced on October 25 and the first trading day is to be determined.
HSBC Saudi Arabia (HSBA.L), Goldman Sachs Saudi Arabia (GS.N) and SNB Capital (1180.SE) are joint financial advisers, bookrunners and underwriters for the IPO.
($1 = 3.7575 riyals)
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Reporting by Yousef Saba; Editing by David Gregorio
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