State energy company, Abu Dhabi National Oil Co. (Adnoc) has said it will go forward with an initial public offering of its drilling business and its shares will be listed for trading on the Abu Dhabi Securities Exchange.
Adnoc Drilling will include 7.5 percent of its issued share capital in the offering to individuals and other investors in the UAE and to Adnoc Group companies’ employees and Adnoc Group UAE national retirees, as well as qualified institutional and other investors.
“Building on the highly successful listing of Adnoc Distribution in 2017, this offering marks another significant milestone in Adnoc’s ongoing journey in unlocking and maximising value across our integrated asset base,” said Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc managing director and group CEO.
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’s planned value creation opportunities, including a major rig fleet expansion and well drilling program, 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,” Al Jaber added.
Moelis has been appointed the lead financial adviser. JPMorgan, First Abu Dhabi Bank, Goldman Sachs and HSBC are joint global co-ordinators.
Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc managing director and group CEO.
Bloomberg reported that the minority stake sold could be part of a deal that valued the business at up to $10 billion.
Alongside tapping new revenue sources, Abu Dhabi, which holds most of the UAE’s crude deposits, is looking to revive its dormant stock market by bringing in local or international investors. Government entities such as Adnoc, Mubadala Investment Co. and ADQ have also been exploring different ways to raise cash for their owner.
Adnoc recently picked banks for the initial public offering of a fertiliser joint venture called Fertiglobe, while wealth fund Mubadala hired advisers for the listing of satellite operator Yahsat.
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