Saudi Arabia's oil and gas drilling contractor Arabian Drilling Co., which plans to float a 30% stake, has set the price range for the IPO at SAR 90-100 ($24-$26.6) per share, according to HSBC Saudi Arabia, an advisor to the offering.

The total offer is expected to be between SAR2.4 billion ($641 million) and SAR2.67 billion, implying a market capitalization at listing between SAR8 and SAR8.9 billion, ADC said in a statement.

The drilling company last week said it will sell existing shares representing 19.89% of its share capital, and issue new shares representing 10.11%.

The offering is comprised of 26.7 million ordinary shares, representing 30% of ADC’s share capital.

This consists of a secondary offering of 19.89% of the company’s total share capital through the sale of 17.7 million existing shares by current shareholders, The Industrialization & Energy Services Co., or Taqa, and Services Pétroliers Schlumberger S.A., and a primary offering of 10.11% through the issuance of 9 million new shares.

Immediately following listing, ADC is expected to have a free float of 30% of the entire issued share capital.

Bidding and book-building period for participating entities, including qualified foreign financial institutions starts on Wednesday 28 September 2022 and ends on 5 October 2022.

(Writing by Brinda Darasha; editing by Seban Scaria)