RIYADH: Arabian Drilling Co’s initial public offering attracted strong investor interest, with oversubscription by 61 percent.
With a share price of SR100 ($27), subscriptions took place between Sept. 28 and Oct. 5, according to a bourse filing.
The Saudi Arabia-based drilling company is seeking to float 26.7 million shares, or 30 percent of its capital, through an initial public offering on the Saudi main index.
Founded in 1964, Arabian Drilling Co. is a limited liability company co-owned by Industrialization and Energy Services Co. and Schlumberger, owning 51 percent and 49 percent respectively.
The company operates a fleet of 45 drilling rigs, both onshore and offshore, which include equipment capable of drilling wells from 375 feet below sea level, as well as multi-purpose self-propelled service vessels that can intervene and test wells in the field.
Its main customers are Saudi Aramco, Al-Khafji Joint Operations, Schlumberger Middle East S.A. and Dowell Schlumberger Saudi Arabia Ltd., and Baker Hughes Saudi Arabia.
Arabian Drilling has a contract backlog of SR8.2 billion as of July. 31, which provides further visibility into future revenue.