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ADNOC Drilling Co., part of the UAE state oil giant ADNOC, on Monday announced its intention to float 7.5 percent of its share capital on the Abu Dhabi bourse.
The company, one of the largest drilling companies in the Middle East by fleet size, said the size of the initial public offering (IPO) could be increased at any time before the offer is priced, it said in a statement.
The IPO will be open to individuals and other investors in the UAE and to ADNOC Group Companies Employees and ADNOC Group UAE National Retirees (as defined in the UAE Prospectus) (as part of the UAE retail offering) and to qualified institutional and other investors (as part of the qualified investor offering), it said.
ADNOC will continue to own 95 percent of ADNOC Drilling’s share capital post IPO. Baker Hughes Holding SPV Ltd, which now holds 5 percent will not be offering any shares for sale in the IPO.
ADNOC Drilling is the largest national drilling company in the Middle East by rig fleet size. It has 107 rigs as of June 30, 96 of which are owned, the statement said.
VIDEO: ADNOC Drilling to list on ADX
The offer price which will be determined via a book-building process, the statement said, adding that listing of shares on ADX is expected in October, subject to market conditions.
Abdulrahman Abdulla Al Seiari, Chief Executive Officer of ADNOC Drilling, said: “As the sole provider of drilling rig hire services and rig-related services to ADNOC Group on agreed contractual terms, we will continue to play a critical role in enabling ADNOC to deliver on its 2030 crude oil production capacity target of 5 million barrels per day and achieving gas self-sufficiency for the UAE."
For the year ended 31 December 2020, ADNOC Drilling had revenue of $2.09 billion, EBITDA of 959.7 million and profit of $569 million, it added. For the six months ended 30 June 2021, the driller had revenue of $1.12 billion, EBITDA of $499.5 million and a profit of $281.6 million.
ADNOC previously listed ADNOC Distribution, the largest operator of petrol stations and convenience stores in the UAE, in 2017.
(Writing by Brinda Darasha; editing by Seban Scaria)
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