Adnoc raises $1.1 billion in drilling IPO book-building

ABU DHABI: Abu Dhabi National Oil Company (ADNOC) on Monday announced the successful completion of the book build and public subscription process for the Initial Public Offering (IPO) of ADNOC Drilling Company PJSC, according to Emirates News Agency WAM.

It confirmed the previously announced increased offering size from 1,200,000,000 ordinary shares to 1,760,000,000 ordinary shares (Offer Shares), equivalent to 11 per cent of total issued share capital, and an offer price of AED2.30 per ordinary share, resulting in gross proceeds of over $1.1 billion to ADNOC, upon settlement.

The offering was multiple times oversubscribed, with significant demand from UAE retail investors and qualified institutional investors. Total gross demand for the IPO amounted to over $34 billion, implying an oversubscription level in excess of 31 times in aggregate.

Following the completion of the subscription period, the size of the first tranche (reserved for UAE retail investors) was set at 10 per cent; the size of the second tranche (reserved for local, regional and international qualified institutional investors) was set at 86 per cent; and the size of the third tranche (reserved for ADNOC group companies’ employees and UAE national retirees) was set at 4 per cent.

Investors from the first and third tranches will receive an SMS confirmation of their respective allocation on September 30, 2021.

Listing and start of trading on the Abu Dhabi Securities Exchange (ADX) are expected to commence at 10:00 am (UAE time) on October 3, 2021, subject to customary closing conditions, under the symbol “ADNOCDRILL” and ISIN “AEA007301012”.

Upon listing on the ADX, ADNOC will continue to own a majority 84 per cent stake in the company, while Baker Hughes, which entered into a strategic partnership with ADNOC drilling in October 2018, will retain its 5 per cent shareholding. Helmerich & Payne (H&P) will hold 1 per cent through its IPO cornerstone investment announced on September 8, 2021.

First Abu Dhabi Bank PJSC, Goldman Sachs International, HSBC Bank Middle East Limited and J.P. Morgan Securities Plc acted as Joint Global Coordinators and EFG-Hermes UAE Limited, Emirates NBD Capital PSC, International Securities L.L.C, Merrill Lynch International and Société Générale acted as Joint Bookrunners.

First Abu Dhabi Bank acted as the lead receiving bank and Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank and Emirates NBD Bank acted as receiving banks.

Moelis & Company acted as Independent Financial Adviser.

The Internal Sharia Supervision Committees of First Abu Dhabi Bank and HSBC Bank Middle East Limited have issued pronouncements confirming that, in their view, the IPO is compliant with Shariah principles.

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