Advanced Energy Systems (ADES), an oil and gas exploration company affiliated with the Saudi Public Investment Fund (PIF), intends to offer 30% of its shares in the Saudi Tadawul market before the end of this year.
The company postponed the offering in the first half of the year due to global conditions and their impacts on the market, but sources told Daily News Egypt that it is now expected to be implemented in the fourth quarter.
The sources said that the proceeds from the offering are expected to reach about $1.2 billion, which will be used to expand ADES’ operations in Saudi Arabia after moving its headquarters to the country last March.
The company has relocated its main business headquarters to Riyadh, the capital of Saudi Arabia. The company is one of the largest providers of drilling and exploration services in the oil and natural gas sector in the Middle East and North Africa.
Innovative Energy owns all of the shares of ADES, which was acquired in 2021 at a valuation of approximately $550m. Innovative Energy is jointly owned by the Public Investment Fund (PIF), which is the sovereign wealth fund of Saudi Arabia and will hold a 32.5% stake in Innovative Energy, Zamil Group Investment Co. (Zamil Investments), an existing investor in the company, which will hold 10% of Innovative Energy, and ADES Investments Holding Ltd, which will have a majority ownership of 57.5% in Innovative Energy following the acquisition of all ADES shares.
According to a previous statement from the company, the Saudi PIF is in negotiations with the main shareholders of ADES to submit a purchase offer for the company’s shares. ADES, founded by Egyptian businessman Mamdouh Abbas, owns offshore and onshore drilling units in various markets, including Saudi Arabia, Kuwait, Qatar, Egypt, Algeria, and Tunisia.
Mamdouh Abbas, Chairperson of Intro Group and the main shareholder in ADES has stated in previous interviews with Daily News Egypt that the Saudi market is suitable for energy and petroleum-related projects. He also mentioned the possibility of studying double listing on the Egyptian Exchange at a later period.