LONDON, Oct 4 (Reuters Breakingviews) – On most counts, the initial public offering of Abu Dhabi National Oil Company’s exploration companies subsidiary counts as successful. ADNOC Drilling (ADNOCDRILL.AD) priced its enlarged sale of 11% of the corporate conservatively and was rewarded with a 30% pop on Sunday learn extra . The group’s present $13 billion valuation means it now trades at a slight premium to fellow oil companies group Baker Hughes (BKR.N), which retains a 5% stake.
The profitable market debut shrugged off the shortage of curiosity from abroad buyers: foreigners purchased round 10% of the sale, barely lower than Saudi Aramco (2222.SE) managed to attract in its controversial 2019 IPO. Aside from ADNOC Drilling’s extra interesting valuation, the United Arab Emirates typically carries much less baggage as an funding vacation spot for western capital. Yet it was nonetheless promoting shares in a fossil gasoline enterprise. Environmental, social and governance considerations appear to be looming ever bigger for western buyers. (By George Hay)
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