ADNOC increases shares offering for drilling IPO

The Abu Dhabi National Oil Company (ADNOC) has increased the number of ordinary shares offered in the initial public offering (IPO) of ADNOC Drilling to 11 percent due to oversubscription.

“The new offering size was determined by ADNOC, as the selling shareholder, based on significant investor demand and the considerable oversubscription across all Tranches,” said the company in a statement. 

The increase will be from 1.2 billion ordinary shares to 1.76 billion ordinary shares, with Dhs 2.30 (US $0.6262) per share.

ADNOC will continue to own a majority 84 percent stake in the company, while Baker Hughes, will own 5 percent shareholding in the company. 

The subscription period for the ADNOC Drilling IPO remains unchanged and will close on Thursday for UAE retail investors and on Sunday for qualified domestic and international institutional investors. 

ADNOC Drilling is expected to list on the Abu Dhabi Securities Exchange (ADX) on or around October 3, 2021, the company said, adding that it will be the largest IPO on ADX.