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UAE’s oil giant Abu Dhabi National Oil Company (ADNOC) has increased the size of its initial public offering (IPO) for ADNOC Drilling Company.
The number of ordinary shares offered in the IPO has been increased from 1.2 million to 1.76 million ordinary shares, equivalent to 11 percent of total issued share capital of its drilling unit, ADNOC said in a statement on Wednesday morning.
The offer price of 2.3 dirhams ($0.63) per share remains unchanged.
The company announced early this month that it intended to list ADNOC Drilling on the Abu Dhabi bourse and sell 7.5 percent stake in an IPO.
ADNOC said it has increased the offering size based on “significant investor demand and the considerable oversubscription across all tranches”.
“Subject to completion of the IPO, ADNOC will continue to own a majority (84 percent) stake in the company, while Baker Hughes, which entered into a strategic partnership with ADNOC Drilling in October 2018, will retain its 5 percent shareholding,” ADNOC said in its latest statement.
As part of the new offering size, ADNOC also intends to increase the size of the tranches reserved for UAE retail investors, including eligible ADNOC Group of companies’ employees and UAE national retirees.
“The final tranche sizes will be determined at ADNOC’s discretion and announced on September 27, 2021,” said the company.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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© ZAWYA 2021
