ADES intends to offer 30% stake on Saudi's Tadawul before 2023-end

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Egypt - Advanced Energy Systems (ADES), partially owned by the Saudi Public Investment Fund (PIF), intends to offer 30% of its shares on the Saudi stock market Tadawul before the end of this year, sources have told Daily News Egypt.

The company planned for the offering in the first half of the year but it had to delay the move due to global conditions and their impacts on the market.

Last June, ADES obtained regulatory approval for its initial public offering in Riyadh, which may be one of the largest IPOs in the Kingdom this year.

The sources added that the offering has been postponed until market conditions stabilize, explaining that the company aims to use the proceeds of the offering to expand its operations in Saudi Arabia after moving its headquarters to Saudi Arabia last March.

The sources suggested that the proceeds from the offering would reach about $1.2bn, which is expected to be implemented in the fourth quarter of this year.

The company moved its main business headquarters to the Saudi capital, Riyadh, and the company is one of the largest providers of drilling and exploration services in the oil and natural gas sector in the Middle East and North Africa.

Innovative Energy owns 100% of ADES. Innovative Energy’s ownership is distributed between the Saudi PIF (32.5%), Zamil Group (10%), and Intro Group (57.5%).

Innovative Energy acquired all of ADES shares in 2021 in a deal that valued the company at about $550m at the time.

Daily News Egypt revealed earlier that the Saudi Public Investment Fund (PIF) had negotiated with the main shareholders of ADES to submit a purchase offer for the shares of the company, which was founded by the Egyptian businessman Mamdouh Abbas, and owns offshore and onshore drilling units in several markets. It includes Saudi Arabia, Kuwait, Qatar, Egypt, Algeria and Tunisia, according to a previous statement from the company.

Mamdouh Abbas, Chairperson of Intro Group, said in previous statements to Daily News Egypt that the Saudi market is suitable for this type of projects related to energy and oil, pointing to the possibility of studying the double entry in the Egyptian Exchange in a later period.