Abu Dhabi National Oil Company (“ADNOC”), today, will list ADNOC Drilling Company PJSC (“ADNOC Drilling” or the “Company”) on the Abu Dhabi Securities Exchange (“ADX”). This initial public offering (“IPO”) will raise over $1.1 billion, making the ADNOC Drilling IPO the largest-ever ADX listing to date and will also be the first issuance on the newly inaugurated ADX premises. This important milestone will bolster the expansion and diversification of Abu Dhabi’s equity capital markets and further the development of the UAE’s economy and private sector, fully aligned with the UAE’s ‘Principles of the 50’.
The share offering saw significant interest with total gross demand for the IPO amounting to over $34 billion, implying an oversubscription level in excess of 31 times. Upon listing, ADNOC Drilling is expected to be among the top 10 largest companies on the ADX, based on a market capitalization at listing of approximately $10 billion, helping to further diversify and strengthen the Exchange and increasing investor choice.
The overwhelming investor demand for ADNOC Drilling shares underlines the Company’s compelling investment and growth story as the largest drilling company in the Middle East by rig fleet size and the sole provider of drilling rig hire services and certain associated rig-related services to ADNOC Group on agreed contractual terms, underpinned by a unique relationship with ADNOC.
Ahead of the bell ringing ceremony, His Excellency 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 maximization 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.
“The significant demand for this offering, emphasized by the considerable oversubscription, reflects the investment community’s high confidence in ADNOC Drilling and the attractiveness of ADNOC and the UAE as a compelling investment destination. After almost 50 years of continued success and growth, today marks the start of ADNOC Drilling’s new journey as a public company, with ADNOC remaining a committed, strategic, and long-term majority shareholder.”
The ADNOC Drilling IPO and bookbuild also marked a new milestone for ADX as this highly anticipated listing created a significant increase in demand for new National Investor Numbers (“NIN numbers”) from the UAE retail investor community, in turn helping to facilitate and support the further development and growth of the ADX and future ADX listings.
H.E. Mohammed Ali Al Shorafa Al Hammadi, Chairman of ADX, commented: “The listing of ADNOC Drilling is a milestone event for the Abu Dhabi Securities Exchange that will enhance our capital markets and provide a unique opportunity for investors accessing an important and flourishing segment of the Emirate’s economy. 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. 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.”
ADNOC Drilling’s IPO is another significant milestone in ADNOC’s value creation and maximization strategy, developed to ensure the company remains resilient and dynamic, and able to take full advantage of emerging opportunities across the entire energy value chain.
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. ADNOC Drilling is on an upward growth trajectory with a unique contractual relationship with ADNOC and plans to continue to support ADNOC as it delivers on its 2030 growth target to increase oil production capacity to 5 million barrels per day as well as the UAE’s goal to be gas self-sufficient. I would like to thank all our dedicated ADNOC Drilling employees, who made this day possible and look forward to our next chapter as a publicly listed company on ADX.”
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 is testament to the success the ADX One strategy has had in rapidly delivering a diverse range of products and services. The ADNOC Drilling listing will serve to further draw in new investors and issuers, and bolstering the exchange’s market capitalization, which exceeded AED 1 trillion for the first time in 2021. During the year, ADX’s benchmark index also reached a record high, surpassing the 7800-point mark and becoming one of the best-performing indexes in the world this year. We will continue to roll out new products and services to deepen market liquidity and access to finance, which has been greatly enhanced since the introduction of Q Market Makers in October last year.”
ADNOC Drilling shares were offered at a price of AED 2.30 per share on September 13, 2021 following the issue of an intention to float announcement (“ITF”) on September 6, 2021, with allocations and confirmation of the pricing on September 27, 2021. The offering size was increased from 7.5% to 11% of total issued share capital on September 22, 2021. The size of the First Tranche (reserved for UAE Retail Investors) was set at 10%; the size of the Second Tranche (reserved for local, regional and international Qualified Institutional Investors) was set at 86%; and the size of the Third Tranche (reserved for ADNOC Group Companies’ Employees and UAE National Retirees) was set at 4%.
Listing and start of trading on the ADX will commence at 10:00 AM (UAE time) today, subject to customary closing conditions, under the symbol “ADNOCDRILL” and ISIN “AEA007301012”.