Saudi drilling company to sell 30pc stake in IPO

Saudi Arabia's oil and gas drilling contractor Arabian Drilling Co., has announced its intention to float 30 per cent, or 26.7 million shares, in an IPO, reports zawya.com.
Arabian Drilling said it will sell existing shares representing 19.89 per cent of its share capital, and issue new shares representing 10.11 per cent, 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 per cent. 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 per cent and Services Petroliers Schlumberger, an oilfield services company owning the remaining 49 per cent.
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 per cent of the quarter's proceeds.