ADNOC Drilling Company’s $1.1bn initial public offering (IPO) was surpassed by investors placing more than $38bn of orders.

Abu Dhabi National Oil Company (Adnoc) sold 11% of the subsidiary in what ranks as the biggest stock-sale yet in the emirate. The initial shares were offered at AED2.30 each (about £0.40) and will commence trading in Abu Dhabi on Sunday at 10:00 local time.

The deal comes as IPO activity in the United Arab Emirates and Saudia Arabia, especially for energy and commodity companies, picks up. Valuations have been bolstered by this year’s surge in raw material prices as economies recover from the Covid-19 pandemic.

Emirates Global Aluminium and Fertiglobe Holding are expected to follow up on Adnoc Drilling’s IPO. In Saudi Arabia, a $1.2bn listing for ACWA Power International is expected to price on Monday, according to Bloomberg.

 Adnoc, which pumps almost all the UAE’s oil and gas, is increasingly seeking to raise money from its assets to help the government fund efforts to diversify the economy.

Adnoc will retain an 84% stake in Adnoc Drilling, while Baker Hughes, one of the world’s largest oil field services companies, will keep its 5% share.

According to Bloomberg, the lead banks on Adnoc Drilling’s transaction were First Abu Dhabi Bank, Glodman Sachs Group, HSBC Holdings and JPMorgan Chase & Co.