(Bloomberg) -- The energy unit of NMDC Group, a provider of construction and dredging services mainly to the energy industry, jumped in its Abu Dhabi trading debut after raising 3.22 billion dirhams ($877 million) in the United Arab Emirates’ biggest initial public offering this year.
The shares opened at 3.35 dirhams, according to the stock exchange’s website, up 20% from the offer price of 2.8 dirhams apiece. The offering was 31.3 times oversubscribed, excluding cornerstone investors, receiving 88 billion dirhams in demand — and valuing the firm at $3.81 billion.
NMDC Energy’s sale was the biggest one in the UAE this year, eclipsing the $515-million share offering in Alef Education Holding Plc. Listing activity in the Persian Gulf gathered pace since 2021 as governments sold stakes in state-owned businesses to reduce their reliance on the energy sector.
NMDC has this year won contracts from the UAE’s biggest energy company, Abu Dhabi National Oil Co., to work on projects such as a $200 million dredging contract for a natural gas export facility. The company has previously invested in the IPOs of Adnoc’s gas and logistics units.
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