One of the biggest oil and gas drilling companies in Saudi Arabia, Arabian Drilling Co., has declared its intention to float its common shares in an IPO on the Saudi main index. According to a filing with the stock exchange, Arabian Drilling said that the company would sell existing shares totalling 19.98% of its post-listing share capital and issue new shares totalling 10.11%.
The next book-building event will occur from September 28 to October 5, 2022. After the book-building process is finished, the offering’s ultimate offering price will be decided.
The Saudi Exchange authorised the company’s request to sell 26.7 million shares, or 30% of its outstanding stock, on June 27, and the Capital Market Authority approved the sale on June 29. As book-runners and underwriters for Arabian Drilling’s initial public offering, SNB Capital, Goldman Sachs Saudi Arabia, and HSBC Saudi Arabia were selected.
Arabian Drilling Co., a limited liability company established in 1964, is a joint venture between Industrialization and Energy Services Co. and Schlumberger, which each control 51% and 49% of the corporation.
The business runs a fleet of 45 drilling rigs that are both onshore and offshore and are equipped to drill wells as deep as 375 feet under the surface. They also have multi-purpose self-propelled service vessels that can intervene and test wells.
Saudi Aramco, Al-Khafji Joint Operations, Schlumberger Middle East S.A., Dowell Schlumberger Saudi Arabia Ltd., and Baker Hughes Saudi Arabia are a few of its principal clients. As of July 31, Arabian Drilling has a contract backlog worth SR8.2 billion, which gives the company more insight into potential future earnings.
Arabian Drilling is positioned to benefit from its long-standing presence in the Kingdom and the favourable tailwinds in the onshore and offshore markets as a key player in the industry and the leading drilling company in the Kingdom. This will enable it to strengthen and consolidate its market-leading position in the country’s drilling services market.
