Abu Dhabi National Oil Company (ADNOC) said on Monday it raised over $1.1 billion in gross proceeds following the completion of the bookbuild and public subscription process for the initial public offering of ADNOC Drilling Company.
Total gross demand for the IPO amounted to over $34bn, implying an oversubscription level in excess of 31 times in aggregate, a statement from the company said.
Abu Dhabi’s state oil company will now list 11 percent of Adnoc Drilling on the local bourse, up from 7.5 percent previously. It was the largest IPO in the emirate for at least four years, according to data compiled by Bloomberg, and comes amid an uptick in listings there and in Saudi Arabia.
The offer price remains 2.30 dirhams ($0.63), and the offering “was multiple times oversubscribed,” ADNOC said in the statement. The company confirmed it will offer 1.76bn shares, up from 1.2bn.
Trading on the Abu Dhabi Securities Exchange is expected to begin at 10 am on October 3.
Upon listing on the ADX, ADNOC will continue to own a majority 84 percent stake in the Company, while Baker Hughes, which entered into a strategic partnership with ADNOC Drilling in October 2018, will retain its 5 percent shareholding. Helmerich & Payne (“H&P”) will hold 1 percent through its IPO cornerstone investment announced on September 8, 2021.
Following the completion of the subscription period, the size of the first tranche (reserved for UAE retail investors) was set at 10 percent; the size of the second tranche (reserved for local, regional and international qualified institutional investors) was set at 86 percent; and the size of the third tranche (reserved for ADNOC group companies’ employees and UAE national retirees) was set at 4 percent.
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