ADNOC Drillling to join MSCI Index this month

ADNOC Drilling announced that its stock will be included in the MSCI indexes, effective after market close August 30.

This inclusion marks a significant milestone for the company as it joins the ranks of MSCI Emerging Markets (MSCI EM) and MSCI United Arab Emirates (MSCI UAE) indexes, following its successful fulfilment of the necessary criteria.

ADNOC Drilling will become the 12th member of the MSCI UAE index.

Exciting news, we are thrilled to announce that we have been included in the key MSCI indexes. This milestone reflects our commitment to rapidly grow our business and now will not only enhance our visibility among global investors but strengthen our position here in the UAE.… pic.twitter.com/qkziw0LhNE

— ADNOC Drilling (@ADNOCDrilling) August 14, 2024

MSCI Index

The MSCI Emerging Markets Index is a key benchmark, capturing large and mid-cap representation across 24 emerging market countries. Meanwhile, the MSCI UAE Index is designed to assess the performance of large and mid-cap segments within the UAE market.

Abdulrahman Abdulla Al Seiari, chief executive officer of ADNOC Drilling, expressed pride in this achievement, stating, “We are immensely proud that ADNOC Drilling is now a part of the MSCI Indexes. This milestone enables us to further diversify our investor base and enhance the visibility of our unique business model and return profile on the global stage.”

Al Seiari credited the achievement to the company’s steadfast commitment to operational excellence, safety, sustainable growth, investor focus, and the ongoing support of its shareholders.

In May 2024, ADNOC completed a significant placement of 880 million shares in ADNOC Drilling to institutional investors, raising $935m.

This transaction represented 5.5 per cent of ADNOC Drilling’s total issued and outstanding share capital, increasing the company’s free float to 16.5 per cent. This enhanced free float was crucial in meeting the inclusion requirements for the MSCI indexes.

Increased visibility

Being included in the MSCI indexes provides ADNOC Drilling with increased visibility among global investors, which is expected to enhance the credibility of its stock in financial markets. This development is anticipated to boost liquidity, driven by expected passive inflows and potential interest from active institutional investors who track MSCI indexes.

ADNOC Drilling holds the distinction of being the largest drilling and integrated drilling services company in the Middle East, boasting one of the largest multi-discipline drilling fleets globally.

The company plays a vital role in ADNOC Group’s upstream operations, particularly as it works to accelerate its production capacity targets in response to rising global energy demand.

ADNOC Drilling’s integration of Integrated Drilling Services (IDS) into its portfolio in 2018 has enabled it to offer a comprehensive range of start-to-finish well and associated services, covering the entire drilling value chain.

As ADNOC Drilling continues to expand its global footprint, its inclusion in the MSCI indexes represents a significant step towards achieving its long-term growth and investment goals.

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