Oil and gas drilling and production services provider ADES has announced the price range for its initial public offering (IPO).

The range has been set between SR12.5 ($3.33) and SR13.5 ($3.6) per share.

At the top end of the range, the IPO could bring SR4.5bn ($1.2bn) for ADES, which is backed by the Saudi sovereign wealth fund Public Investment Fund (PIF).

ADES is offering 30% stake through the IPO, which comprises both new and existing shares.

While its owners PIF, ADES Investments Holding, and Zamil Group Investment are selling roughly 101.6 million shares, the oil and gas driller is selling 237.1 million new shares in the offering.

Concurrently, ADES commenced the institutional book-building period on 10 September 2023.

According to Bloomberg, within hours of opening books, the IPO was highly oversubscribed throughout the entire range.

Book-building for institutional investors will go on until 14 September.

Retail investors will be able to place orders from 26 to 28 September and the final offer price is expected to be announced on 20 September.

In 2017, ADES listed on the London Stock Exchange.

PIF, Zamil Group Investment joined forces with ADES Investments to take the company private in 2021, valuing ADES at $516m.

Since then, ADES has expanded through acquisitions and offers drilling and production services for oil and gas across the Middle East and North Africa.

With a fleet of 85 rigs, ADES currently operates in seven nations and counts Aramco, Kuwait Oil Company, and North Oil Company in Qatar among its main clients.