ADNOC successfully completes $935 million institutional placement of ADNOC Drilling shares

ADNOC stated today that it has successfully placed 880 million shares of ADNOC Drilling Company with institutional investors, representing 5.5% of ADNOC Drilling's total issued and outstanding share capital, and increasing ADNOC Drilling's free float to 16.5%.

The offering received strong demand from institutional investors in the GCC and abroad and was priced at AED 3.90 (US $1.06) per share, which is approximately 70% higher than the Initial Public Offering (IPO) price of AED 2.30 per share and represents a 5.6% discount to ADNOC Drilling's closing price on May 22, 2024. Settlement of the Offering is expected on or about May 28, 2024.

Consistent robust growth potential

ADNOC Drilling continues to see sustained strong and unique growth potential, as evidenced by the company's first-quarter 2024 financial results, which included record-breaking revenue and earnings, increased dividend distribution, and transformational progress in unconventional.

ADNOC will retain a majority 78.5% stake in ADNOC Drilling and has committed to a six-month moratorium on selling additional shares following the closure of the Offering, subject to standard carve outs.

In a press statement, Khaled Al Zaabi, Group Chief Financial Officer at ADNOC, said, “The significant interest our Offering generated from both domestic and international investors is testament to ADNOC Drilling’s growth trajectory since its IPO and its exciting future growth potential.

“As a committed, long-term majority shareholder, ADNOC looks forward to its continued support of ADNOC Drilling, which is central to ADNOC’s strategic growth initiatives and its role as a key catalyst and critical enabler of the Abu Dhabi financial market,” he added.

The increased free float is expected to enhance ADNOC Drilling's prospects for inclusion in the Morgan Stanley Capital International (MSCI) Emerging Market Index during the next quarterly review, contingent upon meeting all necessary criteria. ADNOC Drilling's potential inclusion in the MSCI index would broaden its investor base and amplify awareness of its compelling value proposition.