By Farah Elbahrawy
Abu Dhabi National Oil Co.’s drilling unit rose as much 25% 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 2.88 dirhams on Sunday, trading above the 2.30 offer price, in the latest sign of high investor demand for new listings in the Middle East. The company had boosted the offer size in September and drew $34 billion in total orders.
Investors have been snapping up shares in a flurry of listings 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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