Abu Dhabi National Oil Co (ADNOC) on Monday said it raised more than $1.1 billion from completing the bookbuilding for the initial public offering (IPO) of its drilling unit. The state-owned energy company said the ADNOC Drilling’s IPO was oversubscribed, with gross demand totalling more than $34 billion. The IPO is also the largest ever listing in the Abu Dhabi Securities Exchange (ADX), which is expected to boost Abu Dhabi’s equity capital markets.
A tranche of 10% was set for domestic retail investors, and a tranche of 86% was allocated for local and international institutional investors. Meanwhile, ADNOC employees and UAE retirees have the remaining 4% trance. ADNOC added that the listing is expected on October 3. The IPO is the second public flotation of ADNOC’s unit after the listing of ADNOC Distribution in 2017.
ADNOC sold 11% of the drilling unit in the bookbuilding, raising it from 7.5% due to oversubscription. ADNOC will control an 84% majority stake in the drilling unit, while Baker Hughes will retain its 5% interest. Helmerich & Payne will own 1% via its IPO cornerstone investment.
