ADNOC Drilling is planning an initial public offering (IPO) and to list its shares for trading on the ADX. 7.5% of ADNOC Drilling’s issued share capital will be included in the offering to individuals and other investors in the UAE and to ADNOC Group Companies employees and ADNOC Group UAE National Retirees as part of the UAE retail offering, and to qualified institutional and other investors as part of the qualified investor offering. ADNOC retains the right to increase the size of the Offering at any time before pricing of the Offering.
“I am delighted to announce our intention to float a minority stake in ADNOC Drilling on the Abu Dhabi Securities Exchange through an IPO,” said Dr. Sultan Al Jaber, CEO and MD of ADNOC Group. “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. Building on the highly successful listing of ADNOC Distribution in 2017, this offering marks another significant milestone in ADNOC’s ongoing journey in unlocking and maximizing value across our integrated asset base.”
For the year ended 31 December 2020, ADNOC Drilling had revenue of $2.09 billion, EBITDA of $959.7 million and profit of $569.0 million. For the six months ended 30 June 2021, ADNOC Drilling had revenue of $1.12 billion, EBITDA of $499.5 million and profit of $281.6 million
“ADNOC Drilling’s planned value creation opportunities, including a major rig fleet expansion and well drilling program, ideally position the company to take full advantage of emerging opportunities across the upstream value chain,” Jaber added. “As such, ADNOC will remain a committed, long-term majority shareholder in ADNOC Drilling, as we believe the company’s strong market position ensures it is poised for further growth for the benefit of Abu Dhabi, the UAE and future ADNOC Drilling shareholders.”
This IPO will constitute a further step in ADNOC’s continued growth trajectory. ADNOC is fully supportive of ADNOC Drilling’s management and business strategy and intends to remain ADNOC Drilling’s long-term majority shareholder.
“As the sole provider of drilling rig hire services and rig-related services to ADNOC Group on agreed contractual terms, we will continue to play a critical role in enabling ADNOC to deliver on its 2030 crude oil production capacity target of 5 million barrels per day and achieving gas self-sufficiency for the UAE,” said Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling. “The success of ADNOC Drilling has been built on the dedication of our people and their deep engineering and technical expertise. We look forward to welcoming our new shareholders to share in the growth of ADNOC Drilling, as we seek to list our shares on the Abu Dhabi Securities Exchange.”
First Abu Dhabi Bank PJSC, Goldman Sachs International, HSBC Bank Middle East Limited and J.P. Morgan Securities Plc have been appointed as Joint Global Coordinators. EFG-Hermes UAE Limited, Emirates NBD Capital PSC, International Securities L.L.C, Merrill Lynch International and Société Générale have been appointed as Joint Bookrunners. First Abu Dhabi Bank PJSC has been appointed as the Lead Receiving Bank. Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC and Emirates NBD Bank PJSC have been appointed as Receiving Banks. Moelis & Company UK LLP DIFC Branch (“Moelis & Company”) has been appointed as independent financial adviser.