Sunday, 3 October 2021

Adnoc Drilling Jumps 33% After Pulling Off Biggest #AbuDhabi IPO - Bloomberg

Adnoc Drilling Jumps 33% After Pulling Off Biggest Abu Dhabi IPO - Bloomberg

Abu Dhabi National Oil Co.’s drilling unit rose as much 33% on its trading debut, after raising 4.05 billion dirhams ($1.1 billion) in the emirate’s biggest ever listing.

Adnoc Drilling shares jumped to 3.05 dirhams on Sunday, trading above the 2.30 offer price. The company is now worth about 48 billion dirhams, making it the ninth most valuable listed firm in the United Arab Emirates, data compiled by Bloomberg show.

Adnoc Drilling had boosted the offer size in September and drew $34 billion in total orders amid a surge in demand for IPOs in the Middle East, where Abu Dhabi is catching up with regional leader Saudi Arabia.

The emirate’s efforts to boost its local exchange seem to be paying off with a clutch of offerings set to raise billions of dollars. Adnoc is also planning to list its fertilizer joint venture as soon as October.

Abu Dhabi, which holds most of the oil in the United Arab Emirates, is using its energy assets to draw in global investors along with their funds and expertise as the nation puts cash into efforts to diversify the economy.

The latest listing comes as commodity prices soar, with oil trading at a three-year high. Adnoc Drilling is the largest national drilling firm in the Middle East by fleet size, with 96 owned rigs.

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