EFG Hermes advises on ADES Holding’s $1.219bn IPO on Tadawul

Fatma Salah
3 Min Read

EFG Hermes, a leading investment bank in Frontier and Emerging Markets (FEM), announced today that it has successfully advised on the SAR 4.572bn ($1.219bn) initial public offering (IPO) of ADES Holding (ADES), a leading oil and gas drilling and production services provider in MENA, on the Saudi Exchange (Tadawul). EFG Hermes acted as joint financial advisor, global coordinator, bookrunner, and underwriter for the transaction.

ADES Holding offered 30% of its total issued share capital, consisting of 338,718,754 shares at SAR 13.5 per share, through a combination of existing and new shares. The existing shares represent 9% and the new shares represent 21% of the company’s issued share capital after the offering. The IPO valued ADES at SAR 15.2bn ($4.1bn) and attracted a strong demand of SAR 286.9bn ($76.5bn) from local, regional, and international investors, resulting in a 62.7x oversubscription. The company started trading today under the symbol 2382.

Mohamed Abou Samra, Managing Director and Deputy Head of Investment Banking at EFG Hermes, said: “We are very proud to have played multiple key roles in the successful IPO of ADES, which gives retail and international investors a unique opportunity to invest in a global drilling leader with a growing international presence. This deal, along with our recent EFG Hermes Saudi Forum in London in collaboration with the Saudi Exchange and the Capital Markets Authority (CMA) as an honorary guest, and our advisory role on the IPO of Lumi Rental Company on Tadawul, demonstrates our commitment to delivering unparalleled value to our clients in the region and showcasing the immense potential of the Kingdom’s thriving investment market. With our sixth IPO this year, we have reaffirmed our position as a leader in executing high-profile, impactful transactions that leave a lasting positive impact on the Kingdom’s and the region’s economic landscape, as we continue to leverage our global distribution network and world-class research capabilities that set new standards in the Saudi market.”

ADES is one of the largest global offshore jackup drilling rig operators. It is headquartered in Al Khobar in Saudi Arabia and operates across seven countries: Saudi Arabia, Kuwait, Qatar, Egypt, Algeria, Tunisia, and India. ADES has over 7,500 employees and a fleet of 85 rigs across its geographies, including 36 onshore drilling rigs, 46 jackup offshore drilling rigs, two jackup barges, and one mobile offshore production unit (MOPU).

This transaction is the latest in a series of deals that EFG Hermes has advised on in the GCC region over the years. Most recently, EFG Hermes advised on the IPOs of ADNOC L&S and ADNOC Gas Plc on the Abu Dhabi Securities Exchange (ADX); Abraj Energy Services on the Muscat Stock Exchange (MSX); and Al Ansari Financial Services PJSC on the Dubai Financial Market (DFM).

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