ADNOC Drilling completes IPO bookbuild raising of over $1.1bn

The Abu Dhabi National Oil Company (ADNOC) has announced the completion of the bookbuild and public subscription process for the initial public offering (IPO) of ADNOC Drilling Company.

It also confirmed the previously announced increased offering size from 1,200,000,000 ordinary shares to 1,760,000,000 ordinary shares, equivalent to 11 per cent of total issued share capital, and an offer price of Dhs2.30 per ordinary share, which resulted in gross proceeds of over $1.1bn to ADNOC, upon settlement.

We’re pleased to announce that the #ADNOCDrilling IPO has raised more than $1.1 billion after significant investor demand.

Upon settlement, the IPO will be the largest-ever listing on the Abu Dhabi Securities Exchange when trading commences on October 3, 2021

— ADNOC Group (@AdnocGroup) September 27, 2021

The offering was multiple times oversubscribed, with demand from UAE retail investors and qualified institutional investors. Total gross demand for the IPO amounted to over $34bn, implying an oversubscription level in excess of 31 times in aggregate.

Read: ADNOC Drilling Company increases offering size for IPO

ADNOC Drilling Company had originally announced its intent to list only 7.5 per cent of shares for trading on ADX earlier this month.

Read: ADNOC Drilling Company announces intent to list 7.5% of shares on ADX

Following the completion of the subscription period, the size of the first tranche (reserved for UAE retail investors) was set at 10 per cent; the size of the second tranche (reserved for local, regional and international qualified institutional investors) was set at 86 per cent; and the size of the third tranche (reserved for ADNOC group companies’ employees and UAE national retirees) was set at 4 per cent.

Investors from the first and third tranches will receive an SMS confirmation of their respective allocation on September 30, 2021. Listing and start of trading on the Abu Dhabi Securities Exchange (ADX) are expected to commence at 10am local time, on October 3, 2021, subject to customary closing conditions, under the symbol “ADNOCDRILL” and ISIN “AEA007301012”.

Upon listing on the ADX, ADNOC will continue to own a majority 84 per cent stake in the company, while Baker Hughes, which entered into a strategic partnership with ADNOC Drilling in October 2018, will retain its 5 per cent shareholding.

Helmerich & Payne will hold 1 per cent through its IPO cornerstone investment announced on September 8, 2021.

First Abu Dhabi Bank, Goldman Sachs International, HSBC Bank Middle East Limited and J.P. Morgan Securities acted as joint global coordinators and EFG-Hermes UAE Limited, Emirates NBD Capital, International Securities, Merrill Lynch International and Société Générale acted as joint bookrunners.

First Abu Dhabi Bank acted as the lead receiving bank and Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank and Emirates NBD Bank acted as receiving banks.

Moelis & Company acted as an independent financial adviser. Meanwhile, the Internal Sharia Supervision Committees of First Abu Dhabi Bank and HSBC Bank Middle East Limited have issued pronouncements confirming that, in their view, the IPO is compliant with Shariah principles, a statement said.