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Oil and gas drilling company ADES has received orders worth SR286.9bn ($76.5bn) for its $1.2bn initial public offering (IPO), reported Bloomberg.

The Saudi Arabian company set the price for its IPO at $3.6 per share, the top end of the range it announced earlier this month.

At that price, ADES, which is backed by the country’s sovereign wealth Public Investment Fund (PIF), is valued at $4.1bn.

In a market that has been rather calm in contrast with the previous year, the demand level indicates solid interest for the IPO with a subscription rate of more than 63-times oversubscribed.

According to Bloomberg, this demand could encourage the Saudi Government to proceed with its intention to sell additional shares of oil and gas major Aramco.

As part of the offering, ADES is selling 237.1 million new shares while its shareholders, PIF, ADES Investments and Zamil Group Investment, are selling roughly 101.6 million shares.

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A total of 30% of the company is being offered in the IPO.

ADES listed on the London Stock Exchange in 2017.

In 2021, PIF and Zamil Group Investment teamed up with ADES Investments to delist the company, which was valued at $516m at the time.

ADES has since grown through acquisitions and now provides oil and gas drilling and production services throughout the Middle East and North Africa.

Currently, it conducts business in seven countries with a fleet of 85 rigs, and its key clients include Aramco, Kuwait Oil Company and North Oil Company in Qatar.

ADES plans to use the IPO proceeds to fund its growth, pay down some of its debt and for other general company purposes.