Abu Dhabi National Oil Company (Adnoc) has announced its plan to sell approximately 880 million ordinary shares, which represents about 5.5% of the total share capital of Adnoc Drilling, through a bookbuild offering. The offering is exclusively open to professional investors, as defined by the UAE Securities and Commodities Authority.
The bookbuilding period has already started and is expected to conclude on Thursday, subject to possible acceleration. The final number of shares to be sold and the offering price will be determined at the end of the bookbuild process. The complete details of the offering will be announced after the bookbuilding process is completed.
This offering entails the sale of shares owned by Adnoc and enables Adnoc to further divest its stake in Adnoc Drilling to enhance liquidity and trading in the company's ordinary shares, as well as to diversify its shareholder base. The increased free float is also anticipated to facilitate Adnoc Drilling's inclusion in the Morgan Stanley Capital International (MSCI) Emerging Market Index during the next quarterly review, provided that Adnoc Drilling meets all the relevant inclusion criteria. MSCI inclusion would not only broaden the company's investor base but also increase awareness of its unique value proposition.
Khaled Al Zaabi, Adnoc's Group Chief Financial Officer, stated, 'Since its IPO in October 2021, Adnoc Drilling has exhibited exceptional growth and delivered superior shareholder returns, including a recent dividend policy upgrade. The company is well-positioned for further expansion as it taps into the UAE's exceptional unconventional energy resources and leverages innovative technologies through its OFS technology joint venture Enersol. As a committed and long-term majority shareholder, this offering aligns with Adnoc's strategic objectives of improving Adnoc Drilling's liquidity and free float, diversifying its shareholder base, and fostering value creation. Furthermore, Adnoc's achievement of MSCI emerging market index inclusion underscores its pivotal role as a catalyst and vital enabler of the Abu Dhabi financial market.'
This sale supports Adnoc's commitment to strengthen the equity capital market in Abu Dhabi while creating sustainable value for shareholders across its listed portfolio. Any unsold shares in Adnoc Drilling held by Adnoc will be subject to a six-month lock-up period from the settlement date.
The joint global coordinators and joint bookrunners for the offering are EFG Hermes UAE Limited (acting in conjunction with EFG Hermes UAE LLC), First Abu Dhabi Bank PJSC, Goldman Sachs International, and J.P. Morgan Securities PLC.
