Gross demand for Adnoc Drilling IPO hit $34b

Dubai - Total gross demand for the IPO amounted to over $34 billion, implying an oversubscription level in excess of 31 times in aggregate

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Issac John

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Listing and start of trading on the Abu Dhabi Securities Exchange (ADX) are expected to commence at 10:00 AM (UAE time) on October 3, 2021. -- File photo
Listing and start of trading on the Abu Dhabi Securities Exchange (ADX) are expected to commence at 10:00 AM (UAE time) on October 3, 2021. -- File photo

Published: Mon 27 Sep 2021, 5:47 PM

The initial public offering of Adnoc Drilling Company was multiple times oversubscribed, with significant demand from retail investors in the UAE and qualified institutional investors.

Total gross demand for the IPO amounted to over $34 billion, implying an oversubscription level in excess of 31 times in aggregate, oil giant Adnoc said on Monday.


Listing and start of trading on the Abu Dhabi Securities Exchange (ADX) are expected to commence at 10:00 AM (UAE time) on October 3, 2021, subject to customary closing conditions, under the symbol “ADNOCDRILL” and ISIN “AEA007301012.

Adnoc’s announcement also confirmed the increased IPO size of 1.76 billion from 1.2 billion ordinary shares, equivalent to 11 per cent of total issued share capital, and an offer price of Dh2.30 per ordinary share, resulting in gross proceeds of over $1.1 billion to Adnoc, upon settlement.


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 the UAE national retirees) was set at 4.0 per cent. Investors from the first and third tranches will receive an SMS confirmation of their respective allocation on September 30, 2021, Adnoc said.

Upon listing on the ADX, the oil giant 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 5.0 per cent shareholding. Helmerich & Payne will hold 1.0 per cent through its IPO cornerstone investment announced on September 8, 2021.

The Internal Shariah Supervision Committees of First Abu Dhabi Bank and HSBC Bank Middle East Limited has issued pronouncements confirming that the IPO is compliant with Shariah principles.

First Abu Dhabi, 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 PSC, International Securities, Merrill Lynch International and Société Générale acted as Joint Bookrunners. First Abu Dhabi acted as the lead receiving bank and Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank and Emirates NBD acted as receiving banks while Moelis & Company acted as an independent financial adviser, said the statement.

-- issacjohn@khaleejtimes.com


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