ADNOC Drilling IPO Price Implies Equity Valuation of $10 Billion

ADNOC Drilling IPO Price Implies Equity Valuation of $10 Billion

The Abu Dhabi National Oil Company (ADNOC) announced on Monday that it has set the offer price per share for the initial public offering of its drilling unit at AED2.30, implying an equity value of $10 billion.

The offer price was determined by ADNOC, as the selling shareholder, and ADNOC Drilling, following investor engagement that saw significant strong initial demand indications from both local and international investors, ahead of the start of the subscription period.

ADNOC and ADNOC Drilling believe the offer price per share provides investors with a highly attractive value proposition that reflects ADNOC’s long-term confidence in ADNOC Drilling’s growth trajectory. This decision also reflects ADNOC’s prioritization of a supportive aftermarket performance post-listing.

The decision to set the price per share also reiterates one of ADNOC’s key objectives to further support the growth, strength and diversification of the UAE and Abu Dhabi equity capital markets.

The subscription period opens on Sunday and will close on Sept. 23 for UAE retail investors and on Sept. 26 for qualified domestic and international institutional investors.

ADNOC Drilling is expected to list on the ADX on or around Oct. 3.