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Saudi Arabia-based Ades Holding has announced the price range for its upcoming initial public offering (IPO) on the Saudi Exchange (Tadawul).

The range has been set between SR12.5 ($3.33) and SR13.5 ($3.6) a share.

At the top end of the range, the IPO could raise SR4.5bn ($1.2bn) for Ades, which is backed by the Saudi sovereign wealth vehicle, the Public Investment Fund (PIF).

Ades is offering 30 per cent of its shares through the IPO, which comprises both new and existing shares.

While its owners, PIF, Ades Investments Holding and Zamil Group Investment, are selling roughly 101.6 million shares, the oil and gas driller is selling 237.1 million new shares in the offering.

Ades commenced the institutional book-building period on 10 September. It will run until 14 September.

Retail investors can place orders from 26 to 28 September and the final offer price is expected to be announced on 20 September.

Ades was listed on the London Stock Exchange in 2017.

PIF and Zamil Group Investment joined forces with Ades Investments to take the company private in 2021, valuing Ades at $516m.

Since then, Ades has expanded through acquisitions. It offers drilling and production services for oil and gas across the Middle East and North Africa region.

With a fleet of 85 rigs, Ades operates in seven countries, with its clients including Saudi Aramco, Kuwait Oil Company and North Oil Company in Qatar.