ADES IPO slated for 4Q 2023? Cairo-born regional oil and gas services company ADES International will make its long-awaited Tadawul debut in 4Q 2023, Al Borsa reports, citing sources it says are in the know. The company is planning to offer a 30% stake with the aim of raising some USD 1.2 bn, which will go towards its Saudi expansion plans, the sources are quoted as saying. Company sources Enterprise spoke to yesterday were unable to confirm the news.

Refresher: ADES has been mulling a Riyadh listing since at least last year but the process has reportedly stalled due to unfavorable market conditions.

A four-month window : The Saudi Capital Market Authority in June approved ADES’ application to offer 338.7 mn shares — 30% of the company’s share capital — on the Saudi exchange. The approval is valid until 21 December.

From Cairo to London to Riyadh: The news comes a few years after Ades delisted from the London Stock Exchange following a takeover backed by Saudi Arabia’s Public Investment Fund (PIF).

O wnership structure : ADES went private in 2021 through a vehicle dubbed Innovative Energy, which purchased 98.6% of the company. At the time, Egyptian conglomerate Intro Group owned a majority 57.5% stake in Innovative through a subsidiary, while the Saudi PIF held a 32.5% stake, and Zamil Investments held 10%.

The hometown angle: The company started life here in Egypt, where it maintains a significant presence. It derived 18% of its revenue locally in 2019 (ahead of a sustained push to expand its regional operations), according to a 2020 investor presentation (pdf) . It is currently the country’s largest offshore driller.

EGX-Tadawul dual listing still in the cards? The company could also look into a dual listing on the Egyptian Exchange after its Saudi debut, Intro Group Chairman Mamdouh Abbas had previously told local media.

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