The UAE’s Abu Dhabi National Oil Co. (ADNOC), which is the majority shareholder of ADNOC Drilling PJSC with a 84% stake, said it plans to offer a further 5.5% of the issued and outstanding share capital of the driller via a bookbuild offering.

The offering of approximately 880 million ordinary shares will be open to certain eligible institutional investors only and not to the general public, it said in a statement.

The bookbuilding period for the offering will commence immediately and is expected to close on May 23, 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.

Final terms are expected to be announced following the completion of the bookbuilding process.  

"A higher free float is also expected to provide a pathway towards inclusion in the Morgan Stanley Capital International (MSCI) Emerging Market Index, which may take place at the next quarterly review subject to ADNOC Drilling meeting all the relevant inclusion criteria," the statement said.

EFG Hermes UAE Limited, 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.

(Writing by Brinda Darasha; editing by Seban Scaria)