Schlumberger-backed Arabian drilling surges in Riyadh debut

Arabian Drilling Co., a Saudi oilfield-services firm partly held by Schlumberger NV, surged in its trading debut after raising $710 million from its initial public offering in Riyadh. 

The shares jumped as much as 20 per cent to 120 riyals on Monday, valuing the company at about $2.8 billion. The company sold the shares at 100 riyals apiece.

Arabian Drilling’s IPO drew $43 billion in orders, and its trading debut comes amid an IPO boom in the energy-rich Gulf, where stock markets have been buoyed by high oil prices and investor inflows. Saudi Arabia has accounted for the bulk of that in terms of number of IPOs, with 22 listings in the kingdom this year out of 34 in the whole of the Middle East, data compiled by Bloomberg show.

Arabian Drilling’s IPO was fully covered within only hours of opening for subscription. The company plans to the IPO proceeds to scale up onshore and offshore fleet and expand operations in the Gulf Cooperation Council region.

The majority owner of Arabian Drilling is Saudi Arabia’s Industrialization & Energy Services Co., known as Taqa, which is backed by the fund, or PIF. Taqa owns 51 per cent and Schlumberger the rest.

© 2022 Bloomberg L.P.

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.