Sunday 16 June 2024

Adnoc offers 880m shares of drilling unit through bookbuild

ABU DHABI, 24 days ago

Abu Dhabi National Oil Company (Adnoc), the current majority shareholder of 84% of the ordinary shares in Adnoc Drilling, announced today (May 22) its intention to offer approximately 880 million ordinary shares corresponding to 5.5% of the issued and outstanding share capital of Adnoc Drilling through a bookbuild offering to certain eligible institutional investors in reliance on Rule 144A and Regulation S of the US Securities Act of 1933, as amended (the US Securities Act).
The Offering is open only to professional investors as defined by the UAE Securities and Commodities Authority (SCA) and will not be available to the public in the UAE or any other jurisdiction.
The bookbuilding period for the Offering will commence immediately and is expected to close tomorrow, subject to acceleration. The final number of shares to be placed and the offering price will be determined at the close of the bookbuild process, reported Wam. 
The final terms of the Offering are expected to be announced following the completion of the book-building process for the Offering.
The IPO will consist exclusively of shares held by Adnoc and allows it to sell a further stake in Adnoc Drilling to enhance liquidity and trading in the drilling unit’s ordinary shares and diversify its shareholder base. 
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.
Adnoc Group Chief Financial Officer Khaled Al Zaabi said: “Since its IPO in October 2021, Adnoc Drilling has delivered exceptional growth and superior shareholder returns including a recent dividend policy upgrade."
"It is poised for further growth as it unlocks the UAE's world-class unconventional energy resources and utilises innovative technologies through its OFS technology joint venture platform Enersol,"
 stated Al Zaabi.
"As a committed, long-term majority shareholder, this offering aligns with Adnoc's strategic objectives to enhance the liquidity and free float of Adnoc Drilling, diversify its shareholder base and supports value creation. Securing MSCI emerging market index inclusion also underscores Adnoc's role as a key catalyst and critical enabler of the Abu Dhabi financial market,” he added.
The sale supports Adnoc’s commitment to further strengthen the Abu Dhabi equity capital market while creating sustainable value for shareholders across its listed portfolio. Shares in Adnoc Drilling held by Adnoc which are not sold in the Offering will be subject to a lock-up period of six months from the settlement date.
EFG Hermes UAE Limited (acting in conjunction with EFG Hermes UAE), First Abu Dhabi Bank, Goldman Sachs International and JP Morgan Securities are acting as Joint Global Coordinators and Joint Bookrunners for the Offering.


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