The Abu Dhabi National Oil Company (ADNOC) will soon list ADNOC Drilling Company on the Abu Dhabi Securities Exchange (ADX).
The ADNOC Drilling initial public offering (IPO) will raise more than $1.1 billion, making it the largest-ever ADX listing to date and will also be the first issuance on the newly opened ADX trading floor. This significant milestone will help to expand and diversify Abu Dhabi’s equity capital markets, as well as the UAE’s economy and private sector, in accordance with the UAE’s “Principles of the 50.”
The IPO drew a lot of attention, with total gross demand exceeding $34 billion, indicating a 31-fold oversubscription rate. ADNOC Drilling is expected to be among the top 10 largest companies on the ADX, with a market capitalization of about $10 billion, contributing to the Exchange’s diversification and strengthening, as well as enhancing investor choice.
The overwhelming investor demand for ADNOC Drilling shares shows the company’s compelling investment and growth story as the Middle East’s largest drilling company by rig fleet size and the sole provider of drilling rig hire services and certain associated rig-related services to the ADNOC Group on agreed contractual terms, backed by a unique relationship with ADNOC.
Dr. Sultan bin Ahmed Al Jaber Minister of Industry & Advanced Technology Group CEO – ADNOC
“ADNOC Drilling’s record-setting listing is another key milestone in its value creation and maximization strategy. Today’s listing will enable domestic and international investors alike to benefit from the growth trajectory of a company that sits at the very heart of ADNOC’s ambitious growth plans. In addition, this highly successful IPO will further strengthen and broaden Abu Dhabi’s vibrant equity capital markets, while driving the UAE’s economic growth, diversification and attracting foreign direct investment.”
The ADNOC Drilling IPO and book-build also marked a new milestone for ADX, as the listing resulted in a significant increase in demand for new National Investor Numbers (NIN numbers) from the UAE retail investor community, facilitating and supporting the ADX’s future development and growth.
Mr. Abdulrahman Abdullah Al Seiari, CEO of ADNOC Drilling, said, “The success of our initial public offering and today’s listing is a huge vote of confidence in ADNOC Drilling. Our company has been at the heart of ADNOC’s ability to unlock the UAE’s energy resources for almost 50 years.”
The ADX benchmark index also hit a new high this year, exceeding the 7800-point mark and becoming one of the best-performing indexes in the world. Since the introduction of Q Market Makers in October last year, market liquidity and access to finance have been greatly enhanced.
Mr. Saeed Hamad Al Dhaheri, Chief Executive Officer of ADX, said, “We are pleased to welcome the listing of ADNOC Drilling on the ADX, the exchange’s second IPO this year. The listing will serve to further draw in new investors and issuers, and bolstering the exchange’s market capitalization, which exceeded $272 billion for the first time in 2021.”
On September 13, 2021, ADNOC Drilling shares were offered for $0.63 per share, following the announcement of an intention to float on September 6th, with allocations and confirmation of the pricing on September 27th.
The offering size was increased from 7.5 percent to 11 percent of total issued share capital on September 22, 2021. The First Tranche’s size was set at 10 percent, the Second Tranche’s size was set at 86 percent, and the Third Tranche’s size was set at 4 percent.
