Transaction witnessed strong investor demand in the largest-ever accelerated bookbuild of a publicly-listed company in the UAE

 ADNOC retains majority 78.5% stake in ADNOC Drilling and welcomes new diversified shareholder base to partake in next phase of the Company’s growth

 Successful Offering increases ADNOC Drilling’s free float by 50%, enhancing liquidity and providing a pathway for broader indexation

 Abu Dhabi, UAE: Abu Dhabi National Oil Company (ADNOC) PJSC (“ADNOC”), announced today that it has successfully completed a placement to institutional investors of 880 million shares in ADNOC Drilling Company PJSC (“ADNOC Drilling” or the “Company”) (ADX Symbol: ADNOCDRILL / ISIN: AEA007301012). This represents 5.5% of ADNOC Drilling’s total issued and outstanding share capital, and will increase the Company’s free float to 16.5%.

The Offering saw strong demand from institutional investors in the GCC and internationally, and was priced at AED 3.90 per share, approximately 70% above the Initial Public Offering (IPO) price of AED 2.30 per share, and represents a 5.6% discount to the Company’s closing price on May 22, 2024. Settlement of the Offering is expected to occur on or around May 28, 2024.

ADNOC continues to see sustained strong and unique growth potential in ADNOC Drilling and this was further demonstrated in ADNOC Drilling’s first quarter 2024 financial results (published on May 13, 2024), which saw the Company record strong revenue and earnings, further enhanced dividend distribution, as well as transformational progress on unconventional. ADNOC will continue to retain a majority 78.5% shareholding in the Company and has also agreed to a restriction from selling further shares for a period of six months from closing of the Offering, subject to customary carve outs.

Khaled Al Zaabi, Group Chief Financial Officer, 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. We thank our existing shareholders and welcome our new investors to partake in our ambitious growth journey focused on delivering sustainable growth and value for Abu Dhabi, the UAE, and all our stakeholders.”

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. MSCI inclusion of ADNOC Drilling would contribute to the diversification of the Company’s investor base and significantly broaden awareness of its unique value proposition.

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

About ADNOC

ADNOC is a leading diversified energy and petrochemicals group wholly owned by the Emirate of Abu Dhabi. ADNOC’s objective is to maximize the value of the Emirate’s vast hydrocarbon reserves through responsible and sustainable exploration and production to support the United Arab Emirates’ economic growth and diversification. To find out more, visit: www.adnoc.ae

Contact:
Oliver Thompson
Vice President, Financial Communications
media@adnoc.ae

Tatiana Volochkovich
Senior Manager, Investor Relations
IR@adnoc.ae

About ADNOC Drilling

ADNOC Drilling, listed on the Abu Dhabi Securities Exchange (ADX symbol “ADNOCDRILL”; ISIN AEA007301012), is the largest drilling and well completions company in the Middle East by fleet size, owning and operating one of the largest multi-discipline drilling fleets in the world. The Company is a critical link in ADNOC’s upstream business, as ADNOC responsibly accelerates its production capacity targets in light of globally increasing demand for energy and enables gas self-sufficiency for the UAE. ADNOC Drilling incorporated Integrated Drilling Services into its portfolio in 2018 and now offers a total solution of start-to-finish wells and associated services that encompass the entire drilling value chain. To find out more, visit: www.adnocdrilling.ae