Adnoc Drilling IPO pricing values equity at $10 billion

ABU DHABI / Agencies

The Abu Dhabi National Oil Company (Adnoc) on Monday announced that it has set the offer price per share for the
initial public offering of Adnoc Drilling Company at AED2.30, implying an equity value of $10 billion.
The offer price was determined by Adnoc, as the selling shareholder, and Adnoc Drilling, following investor engagement that saw significant strong initial demand indications from both local and international investors, ahead of the start of the subscription period, which opened on Monday.
Adnoc and Adnoc Drilling believe the offer price per share provides investors with a highly attractive value proposition that reflects Adnoc’s long-term confidence in Adnoc Drilling’s growth trajectory. This decision also reflects Adnoc’s prioritisation of a supportive aftermarket performance post-listing.
The decision to set the price per share also reiterates one of Adnoc’s key objectives to further support the growth, strength and diversification of the UAE and Abu Dhabi equity capital markets.
The subscription period for the Adnoc Drilling IPO opened on Monday and will close on September 23 for UAE retail investors and on September 26 for qualified domestic and international institutional investors. Adnoc Drilling is expected to list on the ADX on or around October 03.
Adnoc Drilling set the price for its listing at 2.30 dirhams per share, implying an equity value of $10 billion, according to a statement. The offering will represent 1.2 billion shares, or 7.5% of the company, though Adnoc has said it may increase the amount of stock on offer.
The company has enough investor demand to cover the shares currently on offer, according to terms seen by Bloomberg News.
The offering comes as Abu Dhabi tries to revive IPOs on its stock exchange. The bourse, known as ADX, has offered flexibility on the minimum stake size required for share sales and promising to reduce or forgo listing fees.