KHALEEJ TIMES, Tuesday, Sep 7, 2021 | Muharram 30, 1443
Adnoc Drilling to float 7.5% stake on Abu Dhabi Stock Exchange
Emirates:
Adnoc Drilling Co, the largest national drilling company in the Middle
East by rig fleet size, plans to sell a 7.5 per cent stake through an initial
public offering (IPO) and list its shares on the Abu Dhabi Securities Exchange.
The offering is open to institutional and individuals investors, Adnoc group
companies’ employees and Adnoc group UAE national retirees.
This is the second public flotation of a company owned by the Adnoc Group after
it listed Adnoc Distribution in 2017.
Adnoc Drilling owns 107 rigs, of which 96 are owned and 11 are rented, as of
June 30, 2021. It is also the sole provider of drilling rig hire services and
certain associated rig-related services to the Adnoc Group on agreed contractual
terms.
For the year ended December 31, 2020, Adnoc Drilling had revenue of $2.09
billion and a profit of $569 million. For the six months ended June 30, 2021,
Adno Drilling revenue reached $1.12 billion and profit of $281.6 million
From its inception to December 31, 2020, the company had drilled over 9,600
wells with a total distance drilled of over 70 million feet. In the first half
of 2021, it drilled 286 additional wells.
Adnoc group owns a 95 per cent stake in Adnoc Drilling and five per cent is
owned by Baker Hughes. Its 2018 purchase of stake valued Adnoc Drilling at $11
billion.
Bloomberg estimated that a sale of that size could raise about $750 million for
Adnoc Drilling.
Adnoc Drilling has retained the right to increase the size of the offering at
any time before pricing, it said in a statement.
“I am delighted to announce our intention to float a minority stake in Adnoc
Drilling on the Abu Dhabi Securities Exchange through an IPO. This highly
compelling offering, in a company with a robust growth trajectory and attractive
dividend policy, is open to all citizens and residents of the UAE in addition to
international and local institutional investors,” said Dr Sultan Ahmed Al Jaber,
UAE Minister of Industry and Advanced Technology and Adnoc Managing Director and
Group CEO.
Abdulrahman Abdulla Al Seiari, CEO of Adnoc Drilling, said: “We will continue to
play a critical role in enabling Adnoc to deliver on its 2030 crude oil
production capacity target of five million barrels per day and achieving gas
self-sufficiency for the UAE.”
The completion of the IPO is expected to take place in October 2021, subject to
regulatory approvals in the UAE, including listing and trading on the Abu Dhabi
bourse.
First Abu Dhabi Bank, Goldman Sachs, HSBC Bank Middle East and JP Morgan
Securities have been appointed as joint global coordinators. EFG-Hermes UAE
Limited, Emirates NBD Capital, International Securities, Merrill Lynch
International and Société Générale have been appointed as joint book-runners.
First Abu Dhabi Bank has been appointed as the lead receiving bank.
Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank and Emirates NBD Bank have
been appointed as receiving banks. Moelis & Company UK LLP DIFC Branch has been
appointed as independent financial adviser.