Riyad September 18 2022: Arabian Drilling Co., a Saudi oilfield-services firm partly held by Schlumberger NV, hired Goldman Sachs, HSBC Holdings Plc and SNB Capital to manage its initial public offering in Riyadh.
On 29 June 2022G, the CMA approved the Company’s application for the initial public offering of 26,700,000 shares, representing 30% of the Company’s share capital post-listing. The Offer Shares consist of a secondary offering of 19.89% of the Company’s total share capital through the sale of 17,700,000 Sale Shares, and a primary offering of 10.11% through the issuance of 9,000,000 New Shares.
The secondary offering is by way of a pro-rata sell down by the shareholders of Arabian Drilling – TAQA and Schlumberger. The final offer price of the Offer Shares will be determined at the end of a book-building period starting on 28 September 2022G until 5 October 2022G.
Established in 1964G, Arabian Drilling is the leading4 drilling company in the Kingdom with a long-standing track record of operational excellence and expertise in both the onshore and offshore drilling market. With a total fleet size of 45 rigs, Arabian Drilling is the number one player in the Kingdom with a market share of 17.5% in terms of total number of rigs, with an annual average of 275 wells drilled over the last three years.
The Kingdom is critical in addressing the robust hydrocarbon demand in the MENA region, and globally, with the Kingdom expected to be a key contributor towards the incremental volume additions in the MENA region, with 30% of the total MENA additions until 2030G.
This strong market outlook has positively impacted the Kingdom’s onshore and offshore drilling activity, with the Kingdom’s rig count expected to grow significantly to meet the increasing production demand. The Kingdom’s annual contracted onshore and offshore rig count is expected to increase at a CAGR of 14% and 12.7% respectively, from 2021G to 2025G.
As a key player in the sector and the leading drilling company in the Kingdom, Arabian Drilling is poised to benefit from its long-standing presence in the Kingdom and the positive tailwinds in the onshore and offshore markets, allowing it to strengthen and consolidate its market leading position in the country’s drilling services market.