Abu Dhabi National Oil Co.’s drilling unit rose by 33% over the course of its trading debut. This comes after the company raised 4.05 billion dirhams ($1.1 billion) to become the biggest ever Emirati IPO.
Adnoc shares rose on Sunday from an initial asking price of 2.30 dirhams to 3.05 dirhams. As a result of its success on its stock market debut, Adnoc is now the ninth most valuable firm listed in the United Arab Emirates.
The company’s IPO success comes after commodity prices reached a new high, with oil trading at a three-year high.
Prior to its listing, Adnoc’s drilling unit took advantage of the surge in demand for IPOs in the UAE by boosting its offer price, raking in an additional $34 billion. Following this IPO success, Adnoc next plans to list its fertilizer joint venture, with an October IPO in mind.
Adnoc’s drilling listing has provided a substantial boost to Abu Dhabi’s oil growth. Abu Dhabi currently holds the most oil in the UAE and has set a goal to leverage its energy assets to draw in global investors and ultimately diversify its economy.
At present, Adnoc is the largest drilling firm in the Middle East by fleet size, with 96 owned rigs.
