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Borr Drilling set for New York IPO

Jack-up specialist aiming for get on ladder at NYSE but hold on to Oslo listing

Jack-up specialist Borr Drilling is aiming for an initial public offering on the New York Stock Exchange as it looks to expand its shareholder base.

The Dubai-headquartered rig owner said on Wednesday that it had filed a registration statement with the US Securities & Exchange Commission (SEC) in relation to the intended offering.

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The number of shares to be offered is yet to be determined, but Borr is only looking to raise between $10 million and $50 million through the IPO.

It said it would, however, hold on to its current listing on the Oslo Stock Exchange.

Borr said in its accompanying prospectus that it currently has a fleet of 27 units – 26 jack-ups and one semi-submersible. It also has eight jack-ups set for delivery by the end of next year.

Once all these units are delivered, it will have a fleet of 30 jack-ups.

“ We aim to become a preferred operator of jack-up rigs within the jack-up drilling market,” the company said in its prospectus.

“The shallow-water market is our operational focus as we expect demand will recover sooner than in the mid- and deep-water segments of the contract drilling market.

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“We contract our jack-up rigs and offshore employees primarily on a dayrate basis to drill wells for our customers, including integrated oil companies, state-owned national oil companies and independent oil and gas companies.”

In late May, Borr reached a loan deal that will allow the company to refinance all its short-term debt and pay for its newbuilds, addressing concerns at that time about financing.

Five lenders pledged to give the jack-up specialist long-term credit commitments totalling $645 million, allowing it to replace short-term debt facilities of $510 million and push its first debt maturity to 2022.

Borr said it would use the cash to fully finance its remaining newbuilding programme and activate other rigs.

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Borr was set up in 2016 by Tor Olav Troim and Fredrik Halvorsen – former affiliates of Seadrill boss John Fredriksen - aiming to corner the jack-up market by buying rigs from companies hit by the market downturn and ordering newbuilds while scrapping older units ahead of an anticipated market recovery.

It started by acquiring the jack-up fleet of rig giant Transocean in 2019 for $1.35 billion before swiftly following this with other eye-catching en-bloc deals, including taking units from Singapore’s Keppel.

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