Page 11 - MEOG Week 38 2022

MEOG FINANCE & INVESTMENT MEOG

Arabian Drilling prepares for IPO

SAUDI ARABIA SAUDI firm Arabian Drilling Co., owned by of the company’s key clients and Mirdad noted
the local Industrialization & Energy Services that Arabian Drilling is keen to support Aramco’s
Co. (TAQA, 51%) and Schlumberger (49%), efforts to boost maximum sustainable capacity
has appointed banks to manage its initial public (MSC) for oil production from 12mn barrels
offering (IPO). The company released a state- per day to 13mn bpd. The driller was given a six-
ment saying it would sell 26.7mn shares, 30% of month window for the listing when it received
the total, when it lists on the local Tadawul All approval from the Capital Market Authority
Share Index (TASI) – the Riyadh stock exchange. (CMA) for the IPO in late June.
Goldman Sachs, HSBC Holdings and SNB It is also reported to be considering a merger
Capital have been hired to manage the pro- with fellow local firm ADES Group, which would
cess, with the price to be determined after a create a ‘national champion’ for drilling. Saudi
book-building process that will run from Sep- Arabia’s Public Investment Fund (PIF) has pro-
tember 28 until October 5. vided support for both companies, with the sov-
Arabian Drilling’s fleet comprises 45 rigs and ereign wealth fund (SWF) holding a 45% stake in
the company said that a third of the shares sold TAQA and giving support for ADES’ de-listing
will be new shares, noting that the proceeds of from the London Stock Exchange before relocat-
the IPO will be leveraged to expand the com- ing its headquarters from Egypt to Al-Khobar in
pany’s fleet and its operations throughout the Saudi Arabia’s Eastern Province.™
Middle East.
Speaking to Bloomberg, CEO Ghassan Mir-
dad said: “We are in a period of unprecedented
growth for Arabian Drilling – oil prices are up,
demand for energy is high and we are growing.
We have a clear strategy for growth, in Saudi or
outside, and this needs a lot of funding.”
Arabian Drilling operates 45 rigs and had
revenues of $586mn last year. It also has an order
backlog of $2.2bn. With media reports sug-
gesting the company could achieve a valuation
of $1.4bn, this infers that the move could raise
around $420mn.
Majority state-owned Saudi Aramco is one

OQ chooses partners for

sale of gas pipeline unit

OMAN OQ, the state energy investment company of exact size and timing of the sale, they said.
Oman, has reportedly chosen US-based Bank of The gas pipeline unit will be offered up for
America (BoA) and a local lender, Bank Muscat, sale within the framework of a wider priva-
to provide assistance with the upcoming listing tisation programme. The Oman Investment
of its natural gas pipeline unit. Authority (OIA) has announced plans to sell off
Sources familiar with the matter told more than 20 government-owned entities by the
Bloomberg last week that the banks would serve end of 2026 and hopes the divestments will gen-
as sources of support for OQ during the gas pipe- erate revenues of OMR2.6bn ($6.75bn).
line concern’s initial public offering (IPO). They OQ was established in 2019 on the basis of
also said the state-owned company was looking nine state-controlled firms active in the oil and
into the possibility of listing the shares involved gas sector, including but not limited to enti-
in the IPO on two stock exchanges – namely, the ties involved in upstream production, pipeline
Muscat Securities Market (MSX) and the Saudi transport, hydrocarbon processing, fuel sales
Stock Exchange (Tadawul). and petrochemical production. The gas pipeline
The sources, who spoke on condition of ano- unit was one of these nine companies.
nymity, stressed that the details of the IPO had Omani officials had said in June that OQ was
not yet been finalised. OQ may select additional slated to privatise of two of its subsidiaries. How-
banks to serve as advisors and consider listings ever, they did not specify which units had been
on other exchanges as it continues to discuss the designated for sale.™

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