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Goldman Mum on Offshore Driller Borr After 44% Tumble From IPO


By Michael Bellusci

(Bloomberg) Most of Wall Street has now issued an opinion on this year’s worst-performing energy initial public offering by Borr Drilling Ltd., except for its lead book runner Goldman Sachs.

The bank is the only U.S. underwriter of its New York debut not to issue a rating after its 44% tumble from its July offer price. Meanwhile, 12 other analyst firms have rated it a buy and one hold, according to data compiled by Bloomberg. Danske Bank and DNB Markets, which also advised on the deal, have yet to rate it as well.

Summer vacation? Perhaps. Citi was the only Wall Street firm to initiate coverage on Monday, a U.K. holiday, at the end of a 25-day quiet period for analysts at underwriting banks. We like Borr’s positioning as a provider of premium jackup rigs in an improving market,” analyst J.B. Lowe told clients in a note, rating Borr the equivalent of a hold

“That said, we are cautious on the name given its significant debt obligations as well as the large number of idle and newbuild jackups that it will need to contract at current rates or better to meet our forecasts,” he said.

A Goldman representative declined to comment on the matter.

Borr rose 2.3% on Monday to $5.17. That compares to its offer price of $9.30 on July 30. Shares are also listed on the Oslo Børs under the symbol BDRILL.



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