Saudi Arabia's oil and gas drilling contractor Arabian Drilling Co., has announced its intention to float 30%, or 26.7 million shares, in an IPO.

Arabian Drilling said it will sell existing shares representing 19.89% of its share capital, and issue new shares representing 10.11%, according to a bourse filing on Sunday.

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 market share of 17%. It has a contract backlog of SAR 8.2 billion ($2.18 billion) as of 31 July 2022.

The company is in partnership between the Industrialization & Energy Services Company (TAQA), a company backed by Saudi wealth fund the Public Investment Fund, with 51% and Services Petroliers Schlumberger, an oilfield services company owning the remaining 49%.

SNB Capital, Goldman Sachs Saudi Arabia, and HSBC Saudi Arabia are the bookrunners and underwriters for 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% of the quarter’s proceeds.

(Reporting by Brinda Darasha; editing by Seban Scaria)