The drilling subsidiary of Abu Dhabi National Petroleum Corporation is expected to raise approximately AED 2.76 billion (US$751 million) from the 7.5% stake in the planned listing. The energy company stated in a statement on September 13, 2021 that the share price of Adnoc Drilling Company is 2.30 dirhams per share, which means its equity value is US$10 billion.

The subscription period is September 13, UAE retail investors will close on September 23, and the subscription period for qualified domestic international institutional investors will end on September 26. Adnoc Drilling shares are expected to begin trading on the Abu Dhabi Stock Exchange on October 3. The two companies stated that the selling shareholder Adnoc and its drilling subsidiary "have seen signs of strong initial demand from local and international investors before the start of the subscription period." The statement added that the issue price per share provides investors with an "attractive value proposition" and also reflects Adnoc's prioritization of supportive market outlook after its listing. Adnoc announced last week that it intends to issue shares in its drilling company on ADX.

American energy services company Baker Hughes, which holds 5% of Adnoc Drilling Company, will retain its shares. Adnoc will remain a major shareholder after the initial public offering. As part of the retail offering, individual investors and national oil company retirees as well as qualified international investors can obtain the issuance of the shares. 5% of the offer is reserved to the UAE Investment Authority. Adnoc Drilling Company is one of the largest drilling companies in the Middle East, operating 107 onshore, offshore and island drilling rigs, 11 of which are leased. The company began operations in 1972. As Adnoc's oil and gas production capacity increased, the company expanded its rig fleet, adding 67 units since 2010.

Keywords: overseas engineering, international engineering construction, foreign engineering construction news

This is the second initial public offering (IPO) of Adnoc Group. In September 2020, Adnoc placed 1.25 billion shares worth US$1 billion to institutional investors, doubling the number of free float shares to 20%.Editor/XuNing