Finance

ADNOC Drilling starts trading with $10 bln market cap

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Digital boards displaying inventory data are seen as an investor walks previous on the ADX Abu Dhabi Securities Alternate inventory market Might 16, 2012. REUTERS/Ben Job/File Picture

DUBAI, Oct 3 (Reuters) – Abu Dhabi Nationwide Oil Firm (ADNOC) will record on Sunday its drilling unit in a $1.1 billion preliminary public providing (IPO), the most important ever on the Abu Dhabi inventory market.

ADNOC Drilling, whose share providing acquired over $34 billion in demand, is anticipated to be among the many 10 largest firms on the Abu Dhabi Securities Alternate, primarily based on a market capitalisation at itemizing of about $10 billion.

“This vital milestone will bolster the enlargement and diversification of Abu Dhabi’s fairness capital markets and additional the event of the UAE’s economic system and personal sector”, ADNOC mentioned in an announcement.

The IPO is the newest transfer by Gulf oil giants ADNOC and Saudi Aramco to boost money from outdoors traders as they attempt to diversify sources of revenue of their oil-dependent economies.

Saudi Aramco listed in late 2019, elevating $29.4 billion on the earth’s largest IPO.

ADNOC will proceed to personal an 84% majority stake within the unit, whereas Baker Hughes will retain its 5% shareholding. Helmerich & Payne will maintain 1% via its IPO cornerstone funding.

ADNOC elevated the scale of the IPO to 11% of share capital due to oversubscription. It had beforehand focused promoting a minimal stake of seven.5%.

The sale is the second public flotation of an organization owned by the Abu Dhabi oil main after the 2017 itemizing of ADNOC Distribution , the most important operator of petrol stations and comfort shops within the UAE.

Reporting by Davide Barbuscia; Enhancing by Emelia Sithole-Matarise

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