Saudi Arabia - Arabian Drilling Company, a leading oil and gas drilling contractor in Saudi Arabia, has announced the price range for its planned initial public offering (IPO), as well as the commencement of the participating entities' bidding and book-building period.
The company had on September 18 announced its intention to proceed with an IPO of 30% of its share capital. The approved red herring prospectus containing the full details of the offering was published on September 19.
The price range for the offering has been set between SR90 and SR100 per share.
The offering comprises 26,700,000 offer shares, consisting of a secondary offering of 19.89% of the company’s total share capital through the sale of 17,700,000 existing shares by the current shareholders of Arabian Drilling (The Industrialization & Energy Services Company (TAQA) and Services Pétroliers Schlumberger) and a primary offering of 10.11% through the issuance of 9,000,000 new shares.
The total offering size is expected to be between SR2,403 million ($641 million) and SR2,670 million ($712 million), implying a market capitalisation at listing between SR8,010 million ($2,136 million) and SR8,900 million ($2,373 million), the company said.
Immediately following listing, the company is expected to have a free float of 30% of the entire issued share capital of the company.
The IPO will comprise an offer of 26,700,000 offer shares to participating parties entitled to participate in the book-building process (Participating Entities) in accordance with the CMA instructions for book-building process and allocation method in initial public offerings, including non-resident qualified foreign financial institutions in accordance with the rules for qualified foreign financial institutions investment in listed securities.
Following the completion of the participating entities tranche, the offer shares will also be offered to Saudi Arabian nationals, foreign residents in the kingdom and GCC nationals (Individual Investors). Initially, 100% of the offer shares will be provisionally allocated to the Participating Entities. This may be reduced to 24,030,000 shares (representing 90% of the total) depending on the level of demand by individual investors. The final number of offer shares allocated to the Participating Entities will be accordingly adjusted based on subscription from individual investors, the company said.
* Bidding and book-building period for Participating Entities - September 28 to October 5
* Final offer price announcement - Ocotber 11
* Announcement of provisional allotment of offer shares October 11
* Deadline for payment of subscription money by Participating Entities based on their provisionally allocated offer shares -Ocotber 17
* Subscription Period for Individual Investors based on final offer price - Ocotber 18 – 19
* Announcement of final allocation of shares and notification of excess subscription monies (if any) - October 25
* Refund of excess subscription amounts (if any) - On or before October 27
* Expected start of trading on the Saudi Exchange - Trading of the offer shares is expected to commence after all relevant legal requirements and procedures have been fulfilled.
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