Abu Dhabi National Oil Company (ADNOC) has announced an increase in the number of shares offered in the initial public offering (IPO) of ADNOC Drilling from 1.2 billion ordinary shares to 1.76 billion ordinary shares, which represents an 11% stake of the total capital of ADNOC Drilling. This decision follows the approval from the UAE Securities and Commodities Authority. According to their statement today, Wednesday, after the completion of the public subscription process, ADNOC will own a majority stake of 84% in ADNOC Drilling, while Baker Hughes, which entered a strategic partnership with ADNOC Drilling in October 2018, will retain its 5% stake in the company. Additionally, the offering price remains unchanged at AED 2.30 per share, as reported by the Emirates News Agency "WAM."
In this regard, ADNOC also intends to increase the size of the allocated shares for individual investors in the UAE, including the portion designated for qualified ADNOC Group employees and UAE retirees. The final sizes of the allocated portions will be determined at ADNOC's discretion and announced on September 27, 2021. The decision to increase the offering size, as the selling shareholder, came after strong demand from investors, surpassing the subscription amount for the offered shares across all segments.
This increase in offering size will provide a greater opportunity for a larger group of investors to subscribe to ADNOC Drilling, thus benefiting from an attractive investment opportunity. The subscription period for shares of ADNOC Drilling remains the same, closing on September 23 for individual investors in the UAE and on September 26 for qualified local and international institutional investors. ADNOC Drilling is expected to be listed on the Abu Dhabi Securities Exchange on October 3, 2021.
