Adnoc, the Abu Dhabi National Oil Company, has recently completed a placement of 880 million shares in Adnoc Drilling Company to institutional investors. This move represents 5.5 percent of Adnoc Drilling’s total issued and outstanding share capital, increasing the company’s free float to 16.5 percent. The offering garnered strong demand from institutional investors in the GCC and internationally, with shares priced at Dh3.90 per share, a significant increase from the IPO price of Dh2.30 per share.
Adnoc Drilling’s first quarter 2024 financial results showcased the company’s strong revenue and earnings, as well as its enhanced dividend distribution and progress on unconventional projects. Adnoc maintains a majority 78.5 percent shareholding in Adnoc Drilling and has agreed to a restriction on selling further shares for six months. The company sees immense growth potential in Adnoc Drilling, which aligns with its strategic growth initiatives and role in the Abu Dhabi financial market.
The placement of shares in Adnoc Drilling is expected to pave the way for potential inclusion in the Morgan Stanley Capital International (MSCI) Emerging Market Index. A higher free float and MSCI inclusion would diversify Adnoc Drilling’s investor base and increase awareness of its value proposition. The move serves as a significant milestone in Adnoc Drilling’s growth trajectory and aligns with Adnoc’s commitment to delivering sustainable growth and value for all stakeholders.
EFG Hermes UAE Limited, 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. The strong interest from investors, both domestic and international, underscores Adnoc Drilling’s appeal and growth potential, setting the stage for continued success and strategic initiatives in the oil and gas sector. Adnoc’s long-term support and commitment to Adnoc Drilling further solidify its position as a key player in the industry and a catalyst for growth in Abu Dhabi and the UAE.
