ADNOC Drilling lists IPO on Abu Dhabi Securities Exchange

Abu Dhabi National Oil Company (ADNOC) has listed ADNOC Drilling Company on the Abu Dhabi Securities Exchange (ADX) today.

The initial public offering (IPO) will raise over $1.1bn, making it the largest-ever ADX listing to date, a statement said.

Read: ADNOC Drilling completes IPO bookbuild raising of over $1.1bn

#ADNOC Managing Director and Group CEO, H.E. Dr. Sultan Al Jaber, shares his thoughts on ADNOC Drilling’s listing and first day of trading on the Abu Dhabi Securities Exchange (ADX) today, which marks the largest-ever listing on ADX.@ADX_AE pic.twitter.com/6DKC8eRmtZ

— ADNOC Group (@AdnocGroup) October 3, 2021

Upon listing, ADNOC Drilling is expected to be among the top 10 largest companies on the ADX, based on a market capitalisation at listing of approximately $10bn.

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

ADNOC Drilling Company had originally announced its intent to list only 7.5 per cent of shares for trading on ADX earlier last month.

Read: ADNOC Drilling Company announces intent to list 7.5% of shares on ADX

The offering size was increased from 7.5 per cent to 11 per cent of total issued share capital on September 22, 2021.

Read: ADNOC Drilling Company increases offering size for IPO

ADNOC Drilling shares were offered at a price of Dhs2.30 per share on September 13, 2021.

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.

Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC managing director and group CEO, commented: “ADNOC Drilling’s record-setting listing is another key milestone in ADNOC’s value creation and maximisation strategy, and directly builds on the recently announced UAE’s Principles of the 50.

“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.”

“ADX is proud to be playing a key role in Abu Dhabi’s economic diversification strategy by successfully attracting robust and fast-growing companies to our vibrant capital market,” added Mohammed Ali Al Shorafa Al Hammadi, chairman of ADX. “The solid performance of Abu Dhabi-listed securities this year and the attention ADX has garnered on the global stage reflects Abu Dhabi’s commitment to maintaining a transparent regulatory environment, and attractive market place.”