Addis Holding Company, a global company providing drilling and production services to the oil and gas sector in the Middle East and North Africa region, today announced its intention to offer an initial public offering and list its shares on the main market, Tadawul Saudi Arabia.

On June 21, 2023, the Capital Market Authority in Saudi Arabia approved the company’s request to register its capital and offer 338,718,754 ordinary shares of the company’s total capital through the sale of 101,615,626 ordinary shares of the existing shares by “Addis Investments Holdings Limited”, the Public Investment Fund and a group company. Zamil Investment Limited (in proportion to their existing shares), and the issuance of 237,103,128 new shares through the capital increase. The selling shares represent 9% and the new shares represent 21% of the issued capital upon completion of the offering, which equals a total of 30% of the issued capital (after the issuance of new shares and the increase in the company’s capital).

The company will also issue 33,871,875 new shares that will be allocated to the employees of the company and its subsidiaries, provided that they are kept as treasury shares until their ownership is transferred to employees in accordance with the provisions of a long-term incentive plan.

The proceeds of the offering (after deducting the expenses related to the offering) will be distributed to the selling shareholders on a proportional basis based on the ownership percentage of each of them in the sale shares, and the remaining proceeds will be used to reduce part of the debt owed by the group and finance the group’s growth strategy..

The initial public offering of the company is to offer 338,718,754 ordinary shares representing 30% of the company’s capital (after the increase) through the sale of a mixture of existing and new shares.

The offering shares will be listed and traded on the main market of Tadawul Saudi Arabia after the completion of the initial public offering process and the official listing procedures with the Capital Market Authority and Tadawul Saudi Arabia.

The Offer Shares will be offered for subscription to retail and institutional investors, including classes participating outside the United States in “foreign transactions” pursuant to Regulation S under the US Securities Act of 1933, as amended.

A maximum of 338,718,754 shares, representing 100% of the total number of Offer Shares, will be initially allocated to the participating classes.

The financial advisors (referred to below) have the right, in coordination with the company, to reduce the number of shares allocated to the participating classes to 304,846,879 shares, representing 90% of the total offering shares, in order to meet the demand of individual subscribers.

A maximum of 33,871,875 Ordinary Shares will be allocated to individual subscribers, equivalent to 10% of the total Offer Shares. Individual subscribers, at the time of subscription, must have an active portfolio with one of the financial market institutions linked to the receiving party through which the subscription was made, otherwise the subscription will be considered null and the amounts paid will be returned.

The final offering price will be determined upon completion of the book building process.