(Bloomberg) --  

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Arabian Drilling Co., a Saudi oilfield-services firm partly held by Schlumberger NV, obtained the regulator’s approval to list its shares in an initial public offering, joining a steady stream of companies tapping the Gulf’s biggest stock market.

The company received the go-ahead to list a 30% stake, or 26.7 million shares, on the Saudi stock exchange, according to a statement. Bloomberg reported in April, citing people familiar with the matter, that Arabian Drilling appointed the Saudi unit of HSBC Holdings Plc and SNB Capital as financial advisers for an IPO that could value it at more than $1.4 billion.

Read More: Schlumberger-Backed Arabian Drilling Said to Hire Banks for IPO

Investor appetite for local listings remains strong, though a rally in Middle Eastern equities faded over the past month as fears of recessions gripped global markets. Saudi Arabian stocks briefly erased this year’s gains last week, trading about 18% below a high in May, before rebounding as bargain hunters stepped in.

Saudi Arabia’s stock market is one of the most active in the Middle East and since allowing foreigners to directly buy stocks in 2015 has attracted some of the biggest global investors. The exchange has been working for several years to attract listings from companies in the region as it tries to position itself as the main venue for stock trading in Middle East.

Arabian Drilling was founded in 1964 and counts Saudi Aramco, the kingdom’s state energy producer, among its main customers. Saudi Arabia’s Industrialization & Energy Services Co. owns 51% of Arabian Drilling, and Services Petroliers Schlumberger the rest.

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