Dubai: The Saudi industrial major Arabian Drilling Co. has set a price range of SR90-SR100 for its IPO, which will see the company float 30 per cent. The IPO will be a pointer to Saudi and GCC investor mindset at a time when global stock markets remain in extreme turmoil over what further US Fed rate hikes will mean.
Arabian Drilling’s total offer size is expected to be SR2.40 billion and SR2.67 billion, which would then suggest a market cap of SR801 billion and SR8.9 billion.
The offer itself will be split into 26.7 million shares, consisting of a secondary offering of 19.89 per cent of the total share capital through the sale of 17.7 million existing shares by the current shareholders of Arabian Drilling - The Industrialization & Energy Services Company (TAQA) and Services Pétroliers Schlumberger - and a primary offering of 10.11 per cent through the issuance of 9 million new shares.
The shares will be offered to Saudi Arabian nationals, foreign residents in the Kingdom, and GCC nationals. (In the year-to-date, the Tadawul is down 2.3 per cent.)
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