| 25 May 2024, Saturday |

Adnoc Drilling debuts on Abu Dhabi bourse with $10bn market cap

Adnoc Drilling made a strong debut on the Abu Dhabi bourse after its listing on Sunday following a successful initial public offering last week.

The drilling arm of Abu Dhabi National Oil Company (Adnoc) was officially listed on the Abu Dhabi Securities Exchange (ADX), with the stock trading at Dh2.98 at 10.42am UAE time compared with its final IPO price of Dh2.30.

Adnoc Drilling raised $1.1 billion from the IPO last week after it offered 11 per cent of the company’s shares.

“Today’s listing will enable domestic and international investors alike to benefit from the growth trajectory of a company that sits at the very heart of Adnoc’s ambitious growth plans,” Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc’s managing director and group chief executive, said.

“In addition, this highly successful IPO will further strengthen and broaden Abu Dhabi’s vibrant equity capital markets, while driving the UAE’s economic growth, diversification and attracting foreign direct investment.”

Adnoc Drilling is one of the largest drilling companies in the Middle East, operating 107 onshore, offshore and island rigs, of which 11 are rented. The company, which began operations in 1972, has expanded its fleet of rigs, adding 67 since 2010, in line with the growth in oil and gas production capacity at Adnoc.

The share offering saw significant interest with total gross demand for the IPO amounting to over $34bn, implying an oversubscription level in excess of 31 times.

Adnoc Drilling is among the top 10 largest companies on the ADX based on a market capitalisation at listing of approximately $10bn, helping the company to further diversify and strengthen the exchange and increasing investor choice.

“The significant demand for this offering, emphasised by the considerable oversubscription, reflects the investment community’s high confidence in Adnoc Drilling and the attractiveness of Adnoc and the UAE as a compelling investment destination,” Dr Al Jaber said.

Adnoc will continue to maintain its majority 84 per cent stake in Adnoc Drilling. US energy services company Baker Hughes, which entered into a strategic partnership with Adnoc Drilling in October 2018, will retain its 5 per cent interest. US contract oil and gas driller Helmerich & Payne will hold 1 per cent through its IPO cornerstone investment announced on September 8, 2021.

“The Adnoc Drilling listing will serve to further draw in new investors and issuers and bolstering the exchange’s market capitalisation, which exceeded Dh1 trillion for the first time in 2021,” Saeed Al Dhaheri, chief executive of ADX, said.

Adnoc Drilling’s IPO is the second major listing this year in Abu Dhabi and is the largest on the Abu Dhabi stock market.

In July, Al Yah Satellite Communications (Yahsat), a unit of Mubadala Investment Company, raised about $730 million through a public offering.

“Adnoc Drilling is on an upward growth trajectory … and plans to continue to support Adnoc as it delivers on its 2030 growth target to increase oil production capacity to 5 million barrels per day as well as the UAE’s goal to be gas self-sufficient,” Abdulrahman Al Seiari, chief executive of Adnoc Drilling, said.

The company’s stock will start trading on the Abu Dhabi bourse under the symbol ADNOCDRILL and ISIN AEA007301012, Adnoc said.

The latest listing comes as global oil prices continue to trade higher due to improved demand. Brent, the global benchmark was trading above $79 per barrel on Sunday.

  • The National News