Adnoc unit seeks to raise up to $750m in Abu Dhabi IPO

Adnoc Drilling set the price for its listing at AED2.30 per share, implying an equity value of $10 billion, according to a statement. The offering will represent 1.2bn shares, or 7.5 percent of the company, though Adnoc has said it may increase the amount of stock on offer.

The offering comes as Abu Dhabi tries to revive IPOs on its stock exchange. The bourse, known as ADX, is offering sweeteners that include flexibility on the minimum stake size required for share sales and promising to reduce or forgo listing fees.

Satellite operator Yahsat listed in July, and sovereign wealth fund Mubadala Investment Co. is poised to select underwriters for a potential offering of Emirates Global Aluminium that could value it at more than $15bn, people with knowledge of the matter said earlier this month.

Abu Dhabi National Oil Co., also known as Adnoc, has also started preparations for a potential IPO of its fertiliser joint venture Fertiglobe, while sovereign wealth fund ADQ is planning to list Abu Dhabi Ports before the end of this year.

The UAE, the third-biggest producer in the Organisation of Petroleum Exporting Countries (OPEC), has used its oil wealth to broaden its economy, diversifying into industries like tourism and developing global transport and trade hubs. Those businesses suffered last year as the coronavirus pandemic slashed energy use, cut air travel and blocked trade flows.

Adnoc Drilling offer details:

• Subscription period opens September 13 and will close on September 23 for UAE retail investors and on September 26 for qualified domestic and international institutional investors
• Final offer price: September 27
• Expected date of listing: On or around October 3
• Joint global coordinators: First Abu Dhabi Bank, Goldman Sachs, HSBC, JPMorgan
• Joint bookrunners: EFG-Hermes, Emirates NBD Capital, International Securities, Merrill Lynch International and Societe Generale