Norwegian drilling contractor Borr Drilling has been given an approval for listing on the Oslo Stock Exchange (Oslo Børs).
The driller announced its plan to apply for Oslo listing in early August, stating its intention to increase public awareness of the company, improve the liquidity in the trading of the shares, and prepare the company for further growth through asset acquisitions and M&A transactions as reasons behind the decision.
According to the company’s statement on Monday, August 28 the board of directors of Oslo Børs resolved to admit the shares in Borr Drilling Ltd. to listing on Oslo Børs, granting an exemption from the listing requirements regarding three years’ history and activity.
The exemption is granted due to the fact that any valuation of the company can be subject to parameters being available from various sources, and hence, that the market participants can be expected to have adequate information to make a reasoned assessment of the company, Borr explained.
Based on an overall assessment, the board decided that the exemption regarding three years’ history and activity is deemed to be in the interest of the general public and investors. When making its assessment the board took into consideration the company’s significant market value and its considerable free float, and that the company’s main activity has more than three years history.
To remind, the company’s jack-up fleet is made up from two jack-ups bought from a bankrupt U.S. driller, Hercules Offshore, and 15 jack-ups acquired from the Swiss-based Transocean. Hercules sold the jack-up pair for $130 million and Transocean sold 15 jack-up drilling rigs, including five under construction at a Keppel shipyard, for $1.35 billion.
Prior to the first day of listing, the company must satisfy other listing requirements on Oslo Børs. The board authorized the Chief Executive Officer of Oslo Børs to determine the date of the first day of listing, which is to be no later than October 12, 2017.