Saudi Oil Driller IPO Covered Within Hours  | Rigzone

Arabian Drilling Co., a Saudi Arabian oilfield-services firm partly owned by Schlumberger NV, took solely hours to garner sufficient investor orders to totally cowl an preliminary public providing that would increase as a lot as 2.67 billion riyals ($710 million).

Books are coated throughout the worth vary, in response to a message despatched to traders and seen by Bloomberg Information. Arabian Drilling set the vary at 90 riyals to 100 riyals per share, valuing the corporate at as a lot as 8.9 billion riyals, in response to an announcement on Wednesday.

Traders snapping up all shares on provide reveals demand for Saudi IPOs stays robust even after its shares grew to become the primary within the Gulf to fall right into a bear market this week, dragged decrease by the current plunge in oil costs.

Arabian Drilling’s IPO is the most important within the kingdom since pharmacy chain Nahdi Medical Co. raised $1.4 billion, and joins a gradual movement of Gulf firms which can be tapping markets amid excessive oil costs. There have already been 22 listings in Saudi Arabia this 12 months, greater than another full-year complete, information compiled by Bloomberg present.

Investor demand for listings within the Gulf has been robust, with the area rising as a vivid spot in a quiet IPO market globally. Nonetheless, the outlook is darkening with oil falling nearly 40% since June on fears {that a} international financial slowdown attributable to central banks’ aggressive coverage tightening will damage power consumption.

Schlumberger and Industrialization & Power Companies Co., majority managed by the Saudi wealth fund, the Public Funding Fund, will promote 17.7 million shares within the IPO. Arabian Drilling will promote 9 million shares, utilizing the proceeds to scale up its onshore and offshore fleet and broaden operations within the Gulf Cooperation Council area. It counts Saudi oil large Aramco as one in all its fundamental clients, and is seeking to capitalize on the state power producer’s plans to spice up oil and gasoline manufacturing.

The bookbuilding interval for institutional traders will run to Oct. 5, with the ultimate provide worth introduced on Oct. 11. HSBC Holdings Plc, Goldman Sachs Group Inc. and SNB Capital are bookrunners for the IPO.