Arabian Drilling retail IPO 816.45% covered, 5 shares allocated per subscriber

Logo of Arabian Drilling Co. (ADC)

HSBC Saudi Arabia, SNB Capital and Goldman Sachs Saudi Arabia, in their capacity as the joint financial advisors, bookrunners and underwriters, in addition to HSBC Saudi Arabia as the lead manager, of the initial public offering (IPO) of Arabian Drilling Co. (ADC) announced the successful completion of the retail offering.

The offering was 816.45% covered and the value of applications reached nearly SAR 2.18 billion.

Each individual subscriber received a minimum of five shares, while the remainder was allocated on a pro-rata basis, with an allocation factor of 0.9534%.

Fraction shares were collated and allocated in a descending manner at one share per order.

Retail investors started, on Oct. 18, subscription to about 2.67 million shares of ADC, or 10% of total offered shares, at SAR 100 each, as set by the book-building process.

The Capital Market Authority (CMA) approved, on June 29, the company's request to float a 30% stake, or 26.7 million shares, in an IPO.

The offering consists of the following: 

- A secondary offering of 19.89% of the company's total share capital, or 17.7 million existing shares, held by The Industrialization & Energy Services Company (TAQA) and Services Petroliers Schlumberger S.A.

- An initial offering at 10.11% through issuing nine million shares.
 

The company’s institutional offering, which ended last week, was 61x covered.

The value of subscription applications received during the book building process reached SAR 162 billion ($43 billion).

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