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RIYADH: Arabian Drilling Co., one of the largest oil and gas drilling contractors in Saudi Arabia, has announced its intention to list its ordinary shares on the Saudi main index in an initial public offering.

Arabian Drilling said it will sell existing shares representing 19.98 percent of its post-listing share capital, and issue new shares representing 10.11 percent of its share capital, according to a bourse filing.

The upcoming book-building event is going to take place from Sept. 28 to Oct. 5, 2022.

The final offering price of the offering will be determined after the book-building process is complete.

On June 27, The Saudi Exchange gave the green light to the company’s request to offer 26.7 million shares, or 30 percent of its shares, and on June 29, its offering was approved by the Capital Market Authority.

SNB Capital, Goldman Sachs Saudi Arabia, and HSBC Saudi Arabia were chosen as bookrunners and underwriters for Arabian Drilling’s IPO.

“The Arabian Drilling IPO is an opportunity to capitalize on positive market dynamics, providing investors with a great opportunity to be part of a business with a proud history, strong growth drivers and a solid contribution to Vision 2030’s objective of accelerating the Kingdom’s energy and sustainability agenda,” chairman of Arabian Drilling’s Board of Directors, and CEO of TAQA, Khalid Nouh, said.

Founded in 1964, Arabian Drilling Co. is a limited liability company co-owned by Industrialization and Energy Services Co. and Schlumberger who own 51 percent and 49 percent respectively.

The company operates a fleet of 45 drilling rigs, both onshore and offshore, which includes equipment capable of drilling wells from 375 feet below sea level, as well as multi-purpose self-propelled service vessels that can intervene and test wells in the field.

Among its main customers are Saudi Aramco, Al-Khafji Joint Operations, Schlumberger Middle East SA and Dowell Schlumberger Saudi Arabia Ltd., as well as Baker Hughes Saudi Arabia.

Arabian Drilling has a contract backlog of SR8.2 billion as of July. 31, which provides further visibility into future revenue.

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