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ADNOC intends to float minority stake in drilling unit’s IPO

ADNOC intends to float minority stake in drilling unit’s IPO
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Abu Dhabi – Mubasher: ADNOC announced its plan to float a 7.5% minority stake of the subsidiary ADNOC Drilling on the Abu Dhabi Securities Exchange (ADX) in an initial public offering (IPO).

The company said this would mark another key milestone in its value creation strategy.

The final IPO value of the offered equity in the drilling company will be based on different factors like the market condition and investors’ appetite besides others.

The IPO could value the business at up to $10 billion.

The total number of shares that will be offered for subscription stands at 1.2 billion.

The offering and listing of shares on ADX is currently expected by October. This will be after the IPO on 13-23 September for retail investors, according to Bloomberg, while the final offer price shall be on 27 September.

It is worth noting that ADNOC owns 95% of the drilling company, with the remaining 5% held by Baker Hughes. This will be the second IPO of a company owned by the parent firm after it listed ADNOC Distribution in 2017.

First Abu Dhabi Bank (FAB), Goldman Sachs, HSBC, and JPMorgan are acting as the joint global coordinators for the IPO. EFG-Hermes, Emirates NBD Capital, International Securities, Merrill Lynch International, and Societe Generale are the joint bookrunners.