ADNOC raises over $1.1bn as it completes book-building for drilling unit IPO

ADNOC raises over $1.1bn as it completes book-building for drilling unit IPO
Image: Shutterstock
Short Url
Updated 27 September 2021

ADNOC raises over $1.1bn as it completes book-building for drilling unit IPO

ADNOC raises over $1.1bn as it completes book-building for drilling unit IPO
  • The offering was oversubscribed, with total gross demand amounting to more than $34 billion
  • ADNOC will continue to own an 84 percent majority stake in the unit

State oil giant Abu Dhabi National Oil Co (ADNOC) has completed bookbuilding for the initial public offering (IPO) of ADNOC Drilling, raising more than $1.1 billion, it said on Monday.


The offering was oversubscribed, with total gross demand amounting to more than $34 billion, it said in a statement.


"Upon settlement, ADNOC Drilling's IPO will be the largest ever ADX (Abu Dhabi Securities Exchange) listing, further bolstering the UAE and Abu Dhabi's equity capital markets," it said.


A tranche for United Arab Emirates retail investors was set at 10 percent and a tranche for local, regional, and international institutional investors at 86 percent, with the remaining 4 percent to be allocated to ADNOC employees and UAE retirees.


Listing is expected on Oct. 3, ADNOC said.


ADNOC will continue to own an 84 percent majority stake in the unit, while Baker Hughes will retain its 5 percent shareholding. Helmerich & Payne will hold 1 percent through its IPO cornerstone investment.


ADNOC increased to 11 percent of share capital the size of the IPO, it said this month, because of oversubscription. It had previously targeted a minimum stake of 7.5 percent.


The sale is the second public flotation of a company owned by the Abu Dhabi oil major after the 2017 listing of ADNOC Distribution, the largest operator of petrol stations and convenience stores in the UAE.


ADNOC and Saudi Aramco, in neighbouring Saudi Arabia, are seeking to raise cash from outside investors as part of plans to diversify sources of income in their oil-reliant economies.


Saudi Arabia, Oman to sign 13 trade and investment agreements

Saudi Arabia, Oman to sign 13 trade and investment agreements
Updated 17 sec ago

Saudi Arabia, Oman to sign 13 trade and investment agreements

Saudi Arabia, Oman to sign 13 trade and investment agreements

RIYADH: Saudi Arabia and Oman plan to sign thirteen trade and investment agreements, Oman’s minister of commerce, industry and investment promotion said to Asharq. 

The announcement came during the Saudi’s Crown Prince Mohammad bin Salman visit to the Sultanate. 

MORE TO FOLLOW


Italy’s Enel to launch renewable power project in Australia

Italy’s Enel to launch renewable power project in Australia
Updated 16 min 54 sec ago

Italy’s Enel to launch renewable power project in Australia

Italy’s Enel to launch renewable power project in Australia

RIYADH: Enel SpA is the latest European energy giant to announce plans to expand its renewable electricity sales in Australia. 

The Rome-based company will launch a “greentailer” offering 100 percent renewable power to help customers meet sustainability objectives, Bloomberg reported citing a statement by Enel.

The offering initially targets commercial and industrial users but plans to expand to residential users.

This will happen after Enel is issued a retail license this week by the Australian Energy Regulator, the statement said.

The move comes less than a month after the Royal Dutch Shell bought one of Australia’s largest household providers of renewable power.

Enel plans to switch from coal by 2027 and gas by 2040, toward clean energy. It already has 55 GW of renewable energy in its 90-GW global portfolio, Bloomberg said.


Egyptian business sector debt dropped by 77% in 3 years

Egyptian business sector debt dropped by 77% in 3 years
Image: Shutterstock
Updated 06 December 2021

Egyptian business sector debt dropped by 77% in 3 years

Egyptian business sector debt dropped by 77% in 3 years

RIYADH: Companies in the Egyptian business sector have managed to decrease their debts by a notable 77 percent in three years.

Hisham Tawfik, minister of Public Business Sector said the debts dropped from 44 billion Egyptian pounds ($2.8 billion) to 10 billion Egyptian pounds, with the remainder mostly consisting of taxes.

Tawfik said that a settlement had been reached on the debt with only taxes outstanding.

He added that the original value of the debt in 2018 also included costs such as electricity and petroleum. 


Oil gains after Saudi price hike indicating confidence in the demand outlook

Oil gains after Saudi price hike indicating confidence in the demand outlook
Image: Shutterstock
Updated 06 December 2021

Oil gains after Saudi price hike indicating confidence in the demand outlook

Oil gains after Saudi price hike indicating confidence in the demand outlook
  • The price hikes were implemented just days after OPEC+ had agreed to boost output in January

RIYADH: Oil prices rose after top exporter Saudi Arabia raised prices for its crude sold to Asia and the US, shrugging off worries around the omicron variant and suggesting confidence in the demand outlook. 

Bloomberg reported that oil giant, Saudi Aramco, raised its key Arab Light grade for customers in Asia by 60 cents from December to $3.30 a barrel above a benchmark, according to a statement.

The price hikes were implemented just days after OPEC+ had agreed to boost output in January.

"The Saudi move to increase pricing is driving the market,” said Warren Patterson, Singapore-based head of commodities strategy at ING Groep NV.

“A bit of an odd move, given the supply hike in January, the omicron uncertainty and the expectation of a better supplied market in the first quarter of 2022.”


US’s Lockheed Martin to design NASA space station

US’s Lockheed Martin to design NASA space station
Image: Shutterstock
Updated 06 December 2021

US’s Lockheed Martin to design NASA space station

US’s Lockheed Martin to design NASA space station
  • The company will be working on the Starlab project along with Nanoracks and Voyager Space

RIYADH: Lockheed Martin, the US-based aerospace company has confirmed it is one of three partners awarded a $160 million contract by NASA. 

As per the contract, the company is to design NASA’s Starlab commercial space station as part of the US agency’s Commercial Low-Earth Orbit Development program, Cobb County Courier reported. 

The company will be working on the Starlab project along with Nanoracks and Voyager Space. 

“Starlab is the confluence of Lockheed Martin’s rich space expertise and history, Nanoracks’ innovation, and Voyager’s financial savvy,” said Lisa Callahan, vice president and general manager at Lockheed Martin.

“This team is equipped to aid NASA on its mission to expand access to LEO and to enable a transformative commercial space economy,” she added. 

Last month, the company appointed Robert Lightfoot as the new executive vice president of the Space business area as of Jan.1 2022.