JPMorgan, FAB poised to win roles on IPO of ADNOC drilling unit

fab adnoc drilling ipo unit
UAE
  • Date: 05-May-2021
  • Source: Gulf Business
  • Sector: Financial Markets
  • Country: UAE
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JPMorgan, FAB poised to win roles on IPO of ADNOC drilling unit

Abu Dhabi National Oil Co. is close to hiring JPMorgan Chase & Co. and First Abu Dhabi Bank to help arrange the potential listing of its drilling business, according to people familiar with the matter.

ADNOC , as the company is known, is looking to sell a minority stake in its drilling unit in a deal that could value the business at up to $10bn, the people said, declining to be named because the matter is private. In 2018, when Baker Hughes bought a 5 per cent stake in ADNOC Drilling, that deal valued the company at about $11bn, including $1bn of debt.

Although the state energy firm has yet to award formal mandates, the two banks are in pole position for a role on the IPO at the Abu Dhabi Securities Exchange, the people said. ADNOC may also appoint additional advisers, they said.

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