ADNOC gets $935 million from additional 5.5% stake sale in drilling entity

ADNOC gets $935 million from additional 5.5% stake sale in drilling entity

Dubai: ADNOC has easily found investors for the 5.5 per cent additional stake sale in its drilling subsidiary to raise $935 million. The UAE energy company sold 880 million shares, which make up 5.5 per cent of the equity base in ADNOC Drilling, to institutional investors. This will in turn raise ADX listed ADNOC Drilling's free float to 16.5 per cent.

The offering saw 'strong demand from institutional investors in the GCC and internationally'. It was priced at Dh3.90 per share, at a near 70 per cent mark up over the ADNOC Drilling's IPO price of Dh2.30 per share. (The offer price also represents a 5.6 per cent discount to the closing price on May 22.)

The settlement of the secondary offering is expected to occur on or around May 28.

Why go in for a new stock sale?

A higher free float is also expected to provide a pathway towards inclusion in the Morgan Stanley Capital International (MSCI) Emerging Market Index, which may take place at the next quarterly review once ADNOC Drilling meeting all the relevant inclusion criteria. MSCI inclusion of ADNOC Drilling would contribute to the diversification of the company’s investor base and 'significantly broaden awareness of its unique value proposition'.



“The