UAE-based offshore drilling contractor Shelf Drilling says its upcoming IPO is oversubscribed at the minimum deal size within the indicative price range.
The company is currently in the bookbuilding period for the IPO, which is expected to be launched on Oslo Stock Exchange around June 25.
Shelf Drilling expects to have between 47.8-51.9 percent and 51-56 percent of its shares in the free float after completion of the IPO, depending on the use of over-allotment option, while it expects to raise $200-250m. The company will use the proceeds to redeem all of the preferred shares and acquire one or two premium jackup rigs.
Shelf Drilling said in an investor presentation in March that demand for jackup rigs has been steadily growing through 2017 after hitting at the end of 2016 the lowest levels since mid 2000s.
Shelf Drilling is world’s largest contractor of jackup rigs and its fleet consists of 38 rigs.