ADES International Holding, the oil and gas driller backed by Saudi Arabia’s sovereign wealth fund, on Monday announced its intent to proceed with an IPO and list its shares on Riyadh's Tadawul exchange.

It will offer for sale a total 30% of its share capital, comprising 21% of existing shares and 9% fresh shares, the company said in a statement.

The final pricing of the offer will be announced on 18 September, it added.

The selling shareholders are ADES Investments Holding Ltd., the Public Investment Fund (PIF) and Zamil Group Investment Ltd.

In June, Saudi Arabia's market regulator, the Capital Market Authority (CMA), gave the green light for the IPO.

The group recently relocated its headquarters from Dubai International Financial Centre (DIFC) to Saudi Arabia where its main client (Saudi Aramco) and the majority of the group’s operations, shareholders, and banks are located.

Its major clients include Kuwait Oil Company in Kuwait and North Oil Company in Qatar, which together with Aramco represent more than 95% of the group’s total backlog as of 31 December 2022 and 82% of revenue from contracts with customers for the year ended 2022.  

ADES has a fleet of 85 rigs operating in seven countries including Saudi Arabia, Kuwait, Qatar, Egypt, Algeria, and Tunisia. Its total revenue from contracts in H1 2023 was $528 million.

(Reporting by Brinda Darasha; editing by Seban Scaria)