ADNOC Drilling begins trading with a market cap of $ 10 billion

DUBAI, Oct. 3 (Reuters) – Abu Dhabi National Oil Company (ADNOC) to list its drilling unit in a $ 1.1 billion initial public offering (IPO) on Sunday, the largest ever on the Abu Dhabi Stock Market.

ADNOC Drilling, whose share offering has received a demand of more than $ 34 billion, is expected to be among the top 10 companies on the Abu Dhabi Securities Exchange, based on market capitalization on the market. ‘about $ 10 billion.

“This important step will enhance the expansion and diversification of Abu Dhabi’s capital markets and promote the development of the economy and the private sector of the United Arab Emirates,” ADNOC said in a statement.

The IPO is the latest move by Gulf oil giants ADNOC and Saudi Aramco (2222.SE) to raise funds from outside investors as they attempt to diversify sources of income in their oil-dependent economies.

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

ADNOC will continue to hold an 84% majority stake in the unit, while Baker Hughes (BKR.N) will retain its 5% stake. Helmerich & Payne will own 1% thanks to its key investment in the IPO.

ADNOC increased the size of the IPO to 11% of the share capital due to oversubscription. He previously targeted the sale of a minimum 7.5% stake.

The sale is the second IPO of a company owned by the Abu Dhabi oil major after listing in 2017 of ADNOC Distribution, the largest operator of gas stations and convenience stores in the United Arab Emirates.

Reporting by Davide Barbuscia; Editing by Emelia Sithole-Matarise

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