Saudi oilfield services firm Arabian Drilling has set the final offer price of its initial public offering (IPO) at $26.6 (SAR 100) a share, a bourse filing showed, seeking to raise $710.2 million (SAR 2.67 billion). The book-building process generated an order book of $43.1 billion (SAR 162 billion) from institutional investors and was subscribed 61 times, the filing said.
The final price, set at the top end of a price range announced last month, implies a market capitalization of SAR 8.9 billion ($2.4 billion) at listing.
The IPO will open for retail investors on October 18 until October 19. The final allocation of shares will be announced on October 25, the filing said. The first day of trading is yet to be determined.
A maximum of 2.67 million shares, or 10% of the total shares on offer, will be allocated to individual investors.
The offering includes a primary offering of 10.11% of Arabian Drilling, or 9 million new shares, and a secondary offering of 19.89%, or 17.7 million existing shares, held by the Industrialization & Energy Services Company (TAQA) and Services Petroliers Schlumberger.
The IPO proceeds will be used to scale up Arabian Drilling's onshore and offshore fleet and expand operations in the Gulf region.
HSBC Saudi Arabia, Goldman Sachs Saudi Arabia, and SNB Capital act as joint financial advisors, bookrunners, and underwriters for the IPO.
Arabian Drilling, founded in 1964, counts Saudi Aramco among its major clients. Saudi Arabia’s Industrialization & Energy Services Co. owns 51% of the firm, while Services Petroliers Schlumberger owns the rest. The Saudi oilfield-service company, which operates 45 rigs, reported revenue of SAR 2.2 billion in 2021.
