Saudi Arabia's oil and gas drilling contractor Arabian Drilling Co. (ADC), has set the final price for its IPO at 100 riyals ($26.6) a share.

The final price is at the top end of a price range announced last month, which would value it at 8.9 billion riyals.

The book-building process generated an order book of SAR 162 billion ($43 billion) and was subscribed 61 times underscoring a strong investor appetite.

The IPO is for retail investors from October 18 - 19, according to HSBC Saudi Arabia, an advisor to the offering.

A maximum of 2.67 million shares, representing 10% of the total shares on offer, will be allocated to individual investors.

Ghassan Mirdad, the CEO of ADC, said the company, which specialises in both onshore and offshore drilling, plans to expand further into the GCC, where there is strong demand growth.

“Global investors have come to recognize the significant and integral role we play – and will continue to play – in the oil and gas value chain in the Kingdom," he added.

ADC was set up in 1964 and serves four major clients in Saudi Arabia, including Saudi Aramco. Saudi Arabia’s Industrialization & Energy Services Co. owns 51% of the firm, while Services Petroliers Schlumberger, a global leader in oilfield services, owns the remaining 49%.

Goldman Sachs Group Inc, HSBC Holdings Plc and SNB Capital are joint financial advisors for the IPO.

(Reporting by Brinda Darasha; editing by Seban Scaria)

brinda.darasha@lseg.com