RIYADH: ADES Holding Co., backed by Saudi Arabia’s Public Investment Fund, has announced its plan to proceed with an initial public offering on the primary market of the Kingdom’s stock exchange, the company said in a statement. In the statement, the oil and gas drilling firm noted that the public share sale would comprise 338.71 million ordinary shares, resulting in a free float of 30 percent after the sale of a mix of existing and newly issued shares. ADES Holding will also issue 33.87 million new shares to be allocated to the firm’s employees and its subsidiaries, which shall be maintained as treasury shares until they are transferred to the employees as per the provisions of the long-term incentive scheme, the statement added. In June, Saudi Arabia’s Capital Market Authority gave regulatory approval to ADES Holding to proceed with the IPO. “Our IPO will support us in continuing to deliver growth and cement our position as the leader in the jack-up drilling market in Saudi Arabia and globally,” said Ayman Abbas, chairman of ADES. The statement added that shareholders PIF, ADES Investments Holdings and Zamil Group Investment will collectively sell 101.61 million existing shares in proportion to their shareholding. The company also added that it will issue 237.10 million new shares. ADES CEO Mohamed Farouk said the IPO would accelerate the company’s growth. “Our extensive track record of operational excellence and successful growth, underpinned by our high-quality client relationships, resilient business model and solid backlog, means we are well positioned to deliver strong returns to shareholders,” said Farouk. He added: “Our IPO offers international and retail investors a highly compelling opportunity to invest in a leading global drilling operator with a growing international footprint.” In 2021, PIF partnered with ADES Investments Holding and Zamil Group Investment to take the company private. That deal valued ADES at $516 million at the time. Amid the global economic slowdown, IPOs in Saudi Arabia are progressing steadily, as the Kingdom provides a robust business environment for investors. Earlier this month, a global consultancy firm, Ernst and Young, report revealed that Saudi Arabia is driving IPO activity in the Middle East and North Africa region. According to the report, 11 of the total 13 listings in the region came from the Kingdom, with four listings on Tadawul’s primary market raising $800 million and seven on the parallel market Nomu, which fetched $100 million.