Wednesday 21 June 2023

#SaudiArabia's PIF-Backed Oil Driller Ades Gets Nod for $1 Billion Riyadh IPO - Bloomberg

Saudi Arabia's PIF-Backed Oil Driller Ades Gets Nod for $1 Billion Riyadh IPO - Bloomberg

Stock offerings in Saudi Arabia look set to pick up pace after slowing in the first half of the year, with two new deals for an oil driller backed by the kingdom’s sovereign wealth fund and an air cargo business being given regulatory approval.

Ades Holding, the oil and gas driller backed by the Public Investment Fund, and SAL Saudi Logistics, were both granted approval to sell 30% stakes to the public, the kingdom’s Capital Market Authority said Wednesday. The Ades deal could raise about $1 billion, making it one of the largest Saudi offerings of the year.

Typically one of the biggest and busiest listings markets in the Persian Gulf, Saudi Arabia has recently been more subdued after its stock market slumped last year. However, a 10% rally in the Tadawul All Share Index since the start of the year coupled with a number of debuts this week have shown that investor appetite for offerings is still strong.

Several other large share sales are also in the works though without a clear timeline yet, including a potential secondary offering of Saudi Aramco and a listing of its trading business.

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