Abu Dhabi oil giant ADNOC is increasing the size of the initial public offering (IPO) for its drilling unit, ADNOC Drilling, to 11% of share capital, due to oversubscription.
ADNOC increases the number of shares put up for sale
ADNOC was previously targeting a minimum 7.5% stake in the ADNOC Drilling IPO, at 2.3 dirhams ($0.63) per share.
In a press release, the company states that the price has not changed, but that the number of ordinary shares offered has increased from 1.2 billion to 1.76 billion, which would correspond to a transaction of $1.1 billion, according to Reuters calculations.
Responding to strong investor demand
“The new offer size was determined by ADNOC, as selling shareholder, based on strong investor demand and the considerable oversubscription of all tranches.”
“The enlarged offer will enable a broader investor base to gain exposure to ADNOC Drilling’s highly attractive value proposition,” says the public company.
The company will continue to hold an 84% majority interest in its drilling unit, while Baker Hughes will retain its 5% stake.
The IPO subscription period will close on Thursday, September 23, 2021 for retail investors in the Emirates and on Sunday, September 26, 2021 for domestic and international institutional investors.
The listing is expected to take place on October 3, 2021, says the company.
