ADNOC Drilling jumps over 30% in debut for Abu Dhabi’s largest IPO

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FILE PHOTO: Electronic boards displaying stock information are seen as an investor walks past the ADX Abu Dhabi Securities Exchange stock market on May 16, 2012. Businesshala/Ben Job/File photo
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DUBAI (Businesshala) – ADNOC Drilling shares jumped more than 30% as a unit of Abu Dhabi oil giant ADNOC began trading on Sunday following its $1.1 billion initial public offering (IPO) on the Abu Dhabi stock exchange. The biggest ever.

ADNOC Drilling, whose share offering attracted more than $34 billion in demand, is expected to be one of the 10 largest companies on the Abu Dhabi Securities Exchange by market capitalization at a listing of approximately $10 billion.

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Its shares rose more than 30% to dirhams 3.05 in early trade.

“This important milestone will drive the expansion and diversification of Abu Dhabi’s equity capital markets and the growth of the UAE economy and private sector,” ADNOC said in a statement.

The IPO is the latest move by Gulf oil giants ADNOC and Saudi Aramco to raise cash from outside investors as they attempt to diversify sources of income in their oil-dependent economies.

Saudi Aramco listed in late 2019, raising $29.4 billion in the world’s largest IPO.

ADNOC will continue to own an 84% majority stake in the entity, while Baker Hughes will retain his 5% stake. Helmerick and Payne will hold a 1% stake through their IPO cornerstone investment.

ADNOC increased the size of the IPO to 11% of the share capital due to oversubscription. It had earlier targeted to sell a minimum stake of 7.5%.

The sale of the Abu Dhabi oil major-owned company is the second public floatation after ADNOC Distribution’s 2017 list of the largest operator of petrol stations and convenience stores in the United Arab Emirates.

Reporting by David Barbusia; Editing by Amelia Sithol-Mataris


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