Oil & Gas

Abu Dhabi National Oil Company (ADNOC) successfully raised AED 3.423 billion ($935 million) through the sale of 880 million shares in ADNOC Drilling. The announcement, made on Thursday, May 23, 2024, confirmed the completion of the offering, which represents 5.5% of ADNOC Drilling's total capital shares targeted at institutional investors. These shares are now traded on the Abu Dhabi Securities Exchange under the ticker "ADNOCDRILL" with the international identifier "AEA007301012".

The IPO of ADNOC Drilling is set to settle by approximately May 28, increasing the company's free float to 16.5%. The offering attracted significant interest from institutional investors in the GCC and globally, with shares priced at AED 3.90 each. This price is nearly 70% higher than the initial offering price of AED 2.30 per share and represents a 5.6% discount on the closing share price as of May 22, 2024.

Despite the successful IPO, ADNOC will maintain its majority stake of 78.5% in ADNOC Drilling. Additionally, ADNOC has agreed not to sell any further shares for six months post-offering, with customary exceptions. Khalid Al Zaabi, ADNOC’s Chief Financial Officer, highlighted that the strong investor interest underscores the exponential growth and future potential of ADNOC Drilling since its initial public offering. ADNOC plans to continue its support for ADNOC Drilling in alignment with its strategic growth initiatives.

The increased free float from this offering is anticipated to facilitate ADNOC Drilling's inclusion in the MSCI Emerging Markets Index during the next quarterly review, provided all listing criteria are met. This inclusion is expected to diversify the investor base and emphasize the company's unique investment value. ADNOC's strategic support is seen as a crucial factor in the ongoing diversification and development of the Abu Dhabi Securities Exchange (ADX).

ADNOC Drilling’s fleet plays a vital role in ADNOC’s strategy to boost oil production to 5 million barrels per day by 2027. The company aims to expand its rig fleet to 142 units this year, thereby enhancing its presence in the UAE’s oilfield services market. With ADNOC's IPOs having raised over AED 29.38 billion ($8 billion) and achieving a total demand of AED 1.41 trillion ($385 billion), ADNOC continues to solidify its role in making the UAE a prime destination for global capital.