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ADNOC concludes $935m institutional placement of ADNOC Drilling’s shares

ADNOC concludes $935m institutional placement of ADNOC Drilling’s shares
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Abu Dhabi – Mubasher: Abu Dhabi National Oil Company (ADNOC) has successfully completed a placement to institutional investors of around 880 million ordinary shares of ADNOC Drilling Company.

The offered shares represent  5.50% of the ADX-listed firm’s total share capital and will increase its free float to 16.50%, according to a press release.

Priced at AED 3.90 per share, the offering witnessed strong demand from institutional investors in the GCC region and globally. It was nearly higher by 70% than the Initial Public Offering (IPO) price of AED 2.30 per share.

Meanwhile, the settlement of the offering is expected to take place on or around 28 May 2024.

ADNOC will continue to retain a majority stake of 78.50% in the listed company.

Khaled Al Zaabi, Group Chief Financial Officer of ADNOC, said: “As a committed, long-term majority shareholder, ADNOC looks forward to its continued support of ADNOC Drilling, which is central to ADNOC’s strategic growth initiatives and its role as a key catalyst and critical enabler of the Abu Dhabi financial market.”

EFG Hermes UAE Limited, First Abu Dhabi Bank (FAB), Goldman Sachs International, and J.P. Morgan Securities PLC acted as joint global coordinators and joint bookrunners for the offering.

In the first quarter (Q1) of 2024, ADNOC Drilling generated 26% higher net profits at $274.61 million, compared to $218.68 million in Q1-23.