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

ADNOC Drilling Company has announced its intent to proceed with an initial public offering and list its shares for trading on the Abu Dhabi Securities Exchange (ADX).

A total of 7.5 per cent of ADNOC Drilling’s issued share capital, will be included in the offering to individuals and other investors in the UAE and to ADNOC group companies employees and ADNOC Group UAE national retirees. It will also be offered to qualified institutional and other investors. Abu Dhabi National Oil Company (ADNOC) retains the right to increase the size of the offering at any time before its pricing. Five per cent of the offering will be reserved for offer to the Emirates Investment Authority.

Admission of the shares to trade on the ADX is expected in October 2021.

ADNOC announces its intention to float a 7.5% minority stake of ADNOC Drilling on ADX, marking another key milestone in its value creation strategy.#ADNOCDrilling

— ADNOC Group (@AdnocGroup) September 6, 2021

ADNOC Drilling is the largest national drilling company in the Middle East by rig fleet size with 107 rigs, of which 96 rigs are owned and 11 rigs are rented, as of June 30, 2021. It provides customers with a suite of drilling services, including rig hire and certain associated rig-related services in Abu Dhabi and oilfield services (such as integrated drilling, wireline, directional drilling, cementing, pressure pumping, logging and fluids, and hydraulic fracturing).

ADNOC Drilling had revenue of $2.097bn, an EBITDA of $959.7m and profit of $569m for the year ended December 31, 2020. For the six months ended June 30, 2021, ADNOC Drilling had revenue of $1.12bn, $499.5m EBITDA and profit of $281.6m.

Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC managing director and group CEO, said: “I am delighted to announce our intention to float a minority stake in ADNOC Drilling on the Abu Dhabi Securities Exchange through an IPO. This highly compelling offering, in a company with a robust growth trajectory and attractive dividend policy, is open to all citizens and residents of the UAE in addition to international and local institutional investors.”

“ADNOC Drilling’s planned value creation opportunities, including a major rig fleet expansion and well drilling programme, ideally position the company to take full advantage of emerging opportunities across the upstream value chain. As such, ADNOC will remain a committed, long-term majority shareholder in ADNOC Drilling, as we believe the company’s strong market position ensures it is poised for further growth for the benefit of Abu Dhabi, the UAE and future ADNOC Drilling shareholders.”

“As the sole provider of drilling rig hire services and rig-related services to ADNOC Group on agreed contractual terms, we will continue to play a critical role in enabling ADNOC to deliver on its 2030 crude oil production capacity target of 5 million barrels per day and achieving gas self-sufficiency for the UAE,” added Abdulrahman Abdulla Al Seiari, chief executive officer of ADNOC Drilling. “We look forward to welcoming our new shareholders to share in the growth of ADNOC Drilling, as we seek to list our shares on the Abu Dhabi Securities Exchange.”