{"id":607990,"date":"2023-10-12T00:00:00","date_gmt":"2023-10-12T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/10\/12\/ades-shares-soar-30-in-market-debut-bucking-regional-market-trends\/"},"modified":"2023-10-12T00:00:00","modified_gmt":"2023-10-12T00:00:00","slug":"ades-shares-soar-30-in-market-debut-bucking-regional-market-trends","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/10\/12\/ades-shares-soar-30-in-market-debut-bucking-regional-market-trends\/","title":{"rendered":"ADES shares soar 30% in market debut, bucking regional market trends"},"content":{"rendered":"

Shares of regional oil and gas giant ADES Holding leapt 30<\/strong>% <\/strong>in their first day of trading on the Tadawul yesterday<\/strong>, closing the day at SAR 17.54. The IPO of the Public Investment Fund-backed company had been heavily oversubscribed, with the institutional tranche seeing nearly 10x more demand than there were shares on offer. <\/p>\n

Who sold: <\/strong>Shareholders including PIF, ADES Investments Holdings, and Zamil Group Investment together sold a total of 101.6 mn existing shares, and ADES issued 237.1 mn new shares as part of the transaction, according to Reuters<\/a>. <\/p>\n

Where\u2019s the money going? <\/strong>ADES intends to use the proceeds from the offering to pay down debt, fund its growth strategy, as well as for \u201cgeneral corporate purposes,\u201d Bloomberg<\/a> reports.<\/p>\n

Advisors:<\/strong> Our friends at EFG Hermes acted as joint financial advisor, global coordinator, bookrunner, and underwriter on the offering, according to an EFG Hermes press release (pdf)<\/a> released yesterday.<\/p>\n

Ades started life here in Egypt, where it maintains a significant presence.<\/strong> 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)<\/a>. It is currently the country\u2019s largest offshore driller. The company has also been reported as saying it could look into a dual listing on the Egyptian Exchange after its Saudi debut.<\/p>\n

\n

Another rate hike in the Fed\u2019s future? <\/strong>Most Federal Reserve officials see \u201cone more increase in the target federal funds rate at a future meeting\u201d as appropriate, according to the meeting minutes (pdf)<\/a> released yesterday. Members of the Fed Open Market Committee agreed to \u201cproceed carefully\u201d on future decisions and base their decisions on incoming information and its implications. The bank left interest rates unchanged<\/a> during its September meeting, but hinted that policy will remain tight to fight soaring inflation and bring it down to the target 2%.<\/p>\n

ALSO WORTH NOTING-<\/strong><\/p>\n