Adis Holding, an oil and gas exploration company backed by the Saudi sovereign wealth fund, has started marketing its initial public offering (IPO) to institutional investors as of Sunday. The company is looking to set a share price between 12.50 SAR (3.33 USD) and 13.50 SAR.
A notification to investors today indicated that Adis aims to raise up to 4.57 billion SAR (1.22 billion USD) from selling 30% of the company through the share offering. Reuters had reported from informed sources that the planned IPO could bring in over one billion dollars.
The order book building process for institutional investors will close on September 14. The final share price will be determined at the end of this period. Adis announced its intention to list on the Saudi stock exchange on August 28 by selling both existing and new shares.
The selling shareholders, which include the Public Investment Fund, Adis Investments Holding Limited, and the Al-Zamil Group, will sell a total of 101,615,626 existing shares according to their stakes. Additionally, Adis will issue 237,103,128 new shares.
Today's notification noted that part of the offering proceeds will be distributed to Adis shareholders in proportion to what they sold of their stakes. The remaining proceeds will be used to pay off some of the company's debts and to finance its growth plans.
