ADNOC To Offer 880 Million Shares In ADNOC Drilling To Professional Investors

Abu Dhabi National Oil Company PJSC (ADNOC), the majority shareholder of ADNOC Drilling PJSC (ADX Symbol: ADNOCDRILL / ISIN: AEA007301012), has announced its intention to offer approximately 880 million ordinary shares. This represents about 5.5 percent of the issued and outstanding share capital of ADNOC Drilling.

The offering will be conducted through a bookbuild process targeting eligible institutional investors under Rule 144A and Regulation S of the US Securities Act of 1933. The offering is restricted to Professional Investors as defined by the UAE Securities and Commodities Authority (SCA) and will not be available to the public in the UAE or any other jurisdiction.

The bookbuilding period for the offering begins immediately and is expected to close on 23rd May, 2024, subject to acceleration. The final number of shares to be placed and the offering price will be determined at the close of the bookbuild process. The final terms will be announced following the completion of this process.

This offering consists exclusively of shares held by ADNOC, allowing the company to sell a further stake in ADNOC Drilling. This move aims to enhance liquidity and trading in ADNOC Drilling’s ordinary shares while diversifying its shareholder base.

Potential MSCI Inclusion

A higher free float is anticipated to pave the way for inclusion in the Morgan Stanley Capital International (MSCI) Emerging Market Index, which may occur at the next quarterly review, subject to ADNOC Drilling meeting all relevant criteria. Inclusion in MSCI would diversify the company’s investor base and broaden awareness of its value proposition.

Statements from ADNOC Leadership

Khaled Al Zaabi, Group Chief Financial Officer at ADNOC, stated, "Since its IPO in October 2021, ADNOC Drilling has delivered exceptional growth and superior shareholder returns, including a recent dividend policy upgrade. It is poised for further growth as it unlocks the UAE's world-class unconventional energy resources and utilises innovative technologies through its OFS technology joint venture platform Enersol."

He added that this offering aligns with ADNOC's strategic objectives to enhance liquidity and free float of ADNOC Drilling, diversify its shareholder base, and support value creation. Securing MSCI emerging market index inclusion underscores ADNOC's role as a key catalyst in the Abu Dhabi financial market.

Commitment to Abu Dhabi Equity Capital Market

The sale supports ADNOC’s commitment to strengthening the Abu Dhabi equity capital market while creating sustainable value for shareholders across its listed portfolio. Shares in ADNOC Drilling held by ADNOC that are not sold in the offering will be subject to a lock-up period of six months from the settlement date.

Joint Global Coordinators and Joint Bookrunners

EFG Hermes UAE Limited (acting with EFG Hermes UAE LLC), First Abu Dhabi Bank PJSC, Goldman Sachs International, and J.P. Morgan Securities PLC are acting as Joint Global Coordinators and Joint Bookrunners for the offering.

With inputs from WAM