ESG drills deeper into Gulf oil IPOs | Reuters
On most counts, the initial public offering of Abu Dhabi National Oil Company’s exploration services subsidiary counts as a success. ADNOC Drilling (ADNOCDRILL.AD) priced its enlarged sale of 11% of the company conservatively and was rewarded with a 30% pop on Sunday read more . The group’s current $13 billion valuation means it now trades at a slight premium to fellow oil services group Baker Hughes (BKR.N), which retains a 5% stake.
The successful market debut shrugged off the lack of interest from overseas investors: foreigners bought around 10% of the sale, slightly less than Saudi Aramco (2222.SE) managed to attract in its controversial 2019 IPO. Aside from ADNOC Drilling’s more appealing valuation, the United Arab Emirates in general carries less baggage as an investment destination for western capital. Yet it was still selling shares in a fossil fuel business. Environmental, social and governance concerns seem to be looming ever larger for western investors.
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