The Abu Dhabi National Oil Company (Adnoc) on Monday, September 13, announced the offer price per share for the initial public offering or IPO of Adnoc Drilling.
The initial price is set at AED2.30 (around $0.63) per share, implying an equity share of $10 billion, and the IPO opened on Monday.
The offer price was determined by Adnoc, as the selling shareholder, and Adnoc Drilling.
It is said to have followed investor engagement that saw significant strong initial demand indications from both local and international investors, ahead of the start of the subscription period.
Adnoc and Adnoc Drilling reportedly believe the offer price per share provides investors with a highly attractive value proposition that reflects Adnoc’s long-term confidence in Adnoc Drilling’s growth trajectory.
This decision also reflects Adnoc’s prioritization of a supportive aftermarket performance post-listing, said local reports.
The decision to set the price per share also reiterates one of Adnoc’s key objectives to further support the growth, strength, and diversification of the UAE and Abu Dhabi equity capital markets, said the reports.
The subscription period for the Adnoc Drilling IPO will close on September 23 for UAE retail investors and on September 26 for qualified domestic and international institutional investors.
Adnoc Drilling is expected to list on the ADX on or around October 3.
