Wednesday 12 June 2024
 
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EFG Hermes closes $935m offering for Adnoc Drilling

ABU DHABI, 18 days ago

EFG Hermes, an EFG Holding company and the leading investment bank in the Middle East and North Africa (Mena) region, has announced that its investment banking division has successfully closed a landmark $935 million accelerated equity offering (AEO) for Adnoc Drilling Company.
 
As per the deal, EFG Hermes acted as a joint global co-ordinator and joint bookrunner for the AEO, which is the biggest of its kind in the UAE.
 
Placement constitutes a sale of 880 million shares priced at AED 3.90, representing 5.5% of Adnoc Drilling’s total share capital. 
 
As per the deal, Adnoc will continue to retain a majority 78.5% shareholding in the company. EFG Hermes acted as a joint global co-ordinator and joint bookrunner for the Offering.
 
This transaction signifies a major achievement for EFG Hermes, showcasing the company's increasing expertise and knowledge in regional capital markets, particularly highlighting its strong distribution network. 
 
The AEO sets a new standard in the region due to its magnitude, reinforcing EFG Hermes's standing as the preferred advisor for significant landmark transactions.
 
The Offering saw strong demand from institutional investors in the GCC and internationally and was priced at AED3.9 per share, approximately 70% above the Initial Public Offering (IPO) price of AED2.3 per share and represents a 5.6% discount to the company’s closing price on May 22, 2024. 
 
Settlement of the offering is expected to occur on or around May 28.
 
Ali Khalpey, the Head of Equity Capital Markets at EFG Hermes's Investment Banking division, said: "We are truly honoured and proud to have been chosen to play a pivotal role in this groundbreaking offering. Marking our seventh ECM transaction with Adnoc, this transaction underscores the long-standing and successful relationship between our two companies." 
 
"This AEO, which attracted significant institutional demand from Saudi Arabia, the UAE, and global investors, establishes a new standard for the size and effectiveness of such offerings in the region. It is the largest transaction of its kind to date, potentially paving the way for further similar opportunities" he added.-TradeArabia News Service



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