Page 7 - MEOG Week 40 2021

MEOG FINANCE & INVESTMENT MEOG

Share price surges as trading

of ADNOC Drilling begins

UAE SHARES in the drilling arm of the Abu Dhabi remaining 4% was reserved for the employees
National Oil Co. (ADNOC) jumped by more and UAE national retirees of ADNOC and its
than 30% on the first day of trading following subsidiaries.
its listing on the Abu Dhabi Securities Exchange The IPO was led by First Abu Dhabi Bank,
(ADX). Goldman Sachs, HSBC Holdings and JP Morgan
ADNOC Drilling’s initial public offering Chase & Co. ADNOC said that the offer price
(IPO) was more than 30 times oversubscribed, was determined by it and the subsidiary on the
raising $1.1bn for the parent company, and this back of strong initial demand indications from
strong investor appetite continued as a flurry of local and international investors.
activity on October 3 saw the share price surge ADNOC Drilling is the largest driller in the
from AED2.30 ($0.63) to AED3.05 ($0.83). region and has a fleet of 107 rigs, 96 of which are
While the IPO valued ADNOC Drilling at owned and 11 rigs rented.
around AED36.75bn ($10bn), the price rise These comprise 75 onshore rigs, 20 offshore
implies a valuation of AED47.75bn ($13bn). jack-up rigs, 11 island rigs and a self-propelled
Commenting on the start of trading, barge.
ADNOC said: “This important milestone will The fleet will be key to the parent firm achiev-
bolster the expansion and diversification of Abu ing its crude production goals of raising output
Dhabi’s equity capital markets and further the from 4mn barrels per day to 5mn bpd by 2030.
development of the UAE’s economy and private The IPO follows months of speculation and
sector.” ADNOC having already successfully listed a
The shares were allocated in three tranches: share in its retail fuel division, ADNOC Distri-
the first 10% was reserved for UAE retail inves- bution, in 2017 as well as raising around $15bn
tors; the second tranche made up 86% and was through deals to lease out then lease back oil and
reserved for local, regional and international gas pipeline infrastructure, a model being copied
qualified institutional investors, while the by regional competitor Saudi Aramco.™

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