Adnoc Drilling IPO increased

Share
1 min read
Adnoc has increased the number of ordinary shares for the Adnoc Drilling IPO, but the price is the same.
Share
  • The increase is expected to be from 1.2 billion ordinary shares to 1.76 billion ordinary shares
  • However, the offer price of AED 2.30 per share remains unchanged

The Abu Dhabi National Oil Company or Adnoc will increase the number of ordinary shares offered in the Initial Public Offering of Adnoc Drilling, said local reports on Wednesday, September 22.

This comes following approval from the UAE Securities and Commodities Authority, or SCA, said the local reports.

The increase is expected to be from 1.2 billion ordinary shares to 1.76 billion ordinary shares.

This is believed to equate to 11 percent of Adnoc Drilling’s total issued share capital. However, the offer price of AED 2.30 per share remains unchanged.

Adnoc Drilling is expected to list on the ADX on or around October 3.

Subject to completion of the IPO, Adnoc will continue to own a majority 84 percent stake in the company.

Baker Hughes, which entered into a strategic partnership with Adnoc Drilling in October 2018, will retain its 5 percent shareholding in it.

As part of the new offering size, Adnoc also intends to increase the size of the tranches reserved for UAE retail investors, including eligible Adnoc Group companies’ employees and UAE national retirees, said the reports.

The final tranche sizes are expected to be determined at Adnoc’s discretion and announced on September 27.

The new offering size was determined by Adnoc, as the selling shareholder, based on significant investor demand and the considerable oversubscription across all tranches.

The enlarged offering is expected to enable a broader investor base to obtain exposure to Adnoc Drilling’s highly attractive value proposition.

The subscription period for the Adnoc Drilling IPO remains unchanged and will close on September 23 for UAE retail investors and on September 26 for qualified domestic and international institutional investors.

SPEEDREAD


Today's Headlines

The most important news stories of the day, curated by Post editors and delivered every morning.

Google reCaptcha: Invalid site key.

By signing up you agree to our Terms of Use and Privacy Policy.

MORE FROM THE POST