Abu Dhabi National Oil Company (Adnoc) recently announced its plans to offer approximately 880 million ordinary shares, which is equivalent to about 5.5% of the issued share capital of Adnoc Drilling. The offering will be made through a bookbuild offering and is open only to professional investors as defined by the UAE Securities and Commodities Authority. The bookbuilding period has already begun and is expected to close soon, with the final number of shares and offering price to be determined at the end of the process.
This offering by Adnoc will consist of shares held by the company and aims to enhance liquidity and trading in Adnoc Drilling’s ordinary shares. It will also help diversify the shareholder base of the company, with a potential for inclusion in the Morgan Stanley Capital International (MSCI) Emerging Market Index. This inclusion could happen at the next quarterly review, subject to meeting all relevant criteria. The expansion of the free float is expected to attract more investors and increase awareness of the value proposition of Adnoc Drilling.
Khaled Al Zaabi, the group chief financial officer at Adnoc, highlighted the exceptional growth and shareholder returns that Adnoc Drilling has delivered since its IPO in October 2021. He emphasized the company’s potential for further growth as it taps into the UAE’s unconventional energy resources and utilizes innovative technologies through its OFS technology joint venture platform Enersol. This offering aligns with Adnoc’s strategic objectives to enhance liquidity, diversify the shareholder base, and support value creation for Adnoc Drilling.
By selling a stake in Adnoc Drilling, Adnoc aims to strengthen the Abu Dhabi equity capital market and create sustainable value for shareholders across its listed portfolio. Shares not sold in the offering will be subject to a lock-up period of six months. EFG Hermes UAE Limited, First Abu Dhabi Bank PJSC, Goldman Sachs International, and J.P. Morgan Securities PLC are acting as joint global coordinators and joint bookrunners for this offering, further solidifying the commitment to making this transaction a success. Overall, this offering highlights Adnoc’s strategic vision to enhance the market and create value for its shareholders.
