Page 9 - MEOG Week 37 2021

MEOG FINANCE & INVESTMENT MEOG

ADNOC sets price

for drilling IPO

UAE ABU Dhabi National Oil Co. (ADNOC) this international investors.
week announced the equity valuation of its drill- According to the IPO prospectus ADNOC
ing arm ahead of the company’s upcoming initial will sell at least 1.2bn shares but has retained the
public offering (IPO). right to increase the size of the offering before the
Setting a price of $10bn, the parent will sell end of the subscription period.
a minimum of 7.5% in ADNOC Drilling at ADNOC Drilling is the largest driller in the
AED2.30 per share, to raise at least $750mn. region and has a fleet of 107 rigs, 96 of which are
In October 2018, GE subsidiary Baker owned and 11 rigs rented. These comprise 75
Hughes (BHGE) acquired a 5% stake in the onshore rigs, 20 offshore jack-up rigs, 11 island
company for $550mn, valuing the subsidiary rigs and a self-propelled barge.
at $11bn with the companies advised on the The fleet will be key to the parent firm achiev-
transaction by Citigroup and Moelis & Co. ing its crude production goals of raising output
The remaining 95% remains under ADNOC’s from 4mn barrels per day to 5mn bpd by 2030.
control. On September 8, ADNOC announced that
The announcement follows months of specu- it had signed a strategic alliance with US rig
lation and ADNOC having already successfully owner and designer Helmerich & Payne (H&P)
listed a share in its retail fuel division ADNOC under which ADNOC Drilling will acquire eight
Distribution in 2017. FlexRig land rigs from the American firm for
ADNOC Drilling said on September 6 that $86.5mn.
“subscriptions will start on 13 September and H&P will then make a $100mn corner-
close on 23 September, 2021, and shares will start stone investment in the ADNOC Drilling IPO
trading on 3 October, 2021 on the ADX”, follow- and support the company “in further driving
ing the setting of the final price on September 27. operational excellence through maintenance
The subscription period is now open and will efficiencies, supplementing supply-chain capa-
remain so for UAE retail investors on September bilities, and adding engineering and rig design
23 and for qualified domestic and international competencies”.
institutional investors on September 26. ADNOC said that the move would also
ADNOC said that the offer price was deter- make well completion times more competitive,
mined by it and the subsidiary on the back of increase drilling efficiency and improve well
strong initial demand indications from local and economics.™

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