Adnoc Successfully Completes $935 Million Institutional Placement Of Drilling Unit's Shares


(MENAFN- Khaleej Times) Abu Dhabi National Oil Company (Adnoc) announced on Thursday that it has successfully completed a placement to institutional investors of 880 million shares in Adnoc drilling Company. This represents 5.5 per cent of Adnoc Drilling's total issued and outstanding share capital, and will increase the company's free float to 16.5 per cent.

The offering saw strong demand from institutional investors in the GCC and internationally, and was priced at Dh3.90 per share, approximately 70 per cent above the initial public offering (IPO) price of Dh2.30 per share, and represents a 5.6 per cent discount to the company's closing price on May 22, 2024. Settlement of the offering is expected to occur on or around May 28, 2024.


Adnoc continues to see sustained strong and unique growth potential in Adnoc Drilling and this was further demonstrated in Adnoc Drilling's first quarter 2024 financial results (published on May 13, 2024), which saw the company record strong revenue and earnings, further enhanced dividend distribution, as well as transformational progress on unconventional. Adnoc will continue to retain a majority 78.5 per cent shareholding in the company and has also agreed to a restriction from selling further shares for a period of six months from closing of the offering, subject to customary carve outs.

Khaled Al Zaabi, group chief financial officer, Adnoc, said:“The significant interest our offering generated from both domestic and international investors is testament to Adnoc Drilling's growth trajectory since its IPO and its exciting future growth potential. As a committed, long-term majority shareholder, Adnoc looks forward to its continued support of Adnoc Drilling, which is central to Adnoc's strategic growth initiatives and its role as a key catalyst and critical enabler of the Abu Dhabi financial market. We thank our existing shareholders and welcome our new investors to partake in our ambitious growth journey focused on delivering sustainable growth and value for Abu Dhabi, the UAE, and all our stakeholders.”


A higher free float is also expected to provide a pathway towards inclusion in the Morgan Stanley Capital International (MSCI) Emerging Market Index, which may take place at the next quarterly review subject to Adnoc Drilling meeting all the relevant inclusion criteria. MSCI inclusion of Adnoc Drilling would contribute to the diversification of the Company's investor base and significantly broaden awareness of its unique value proposition.

EFG Hermes UAE Limited (acting in conjunction with EFG Hermes UAE LLC), First Abu Dhabi Bank PJSC, Goldman Sachs International and J.P. Morgan Securities PLC acted as joint global coordinators and joint bookrunners for the offering.

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Khaleej Times

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