The Abu Dhabi Securities Exchange announced the listing of the shares of ADNOC Drilling, next Sunday, October 3, in the main market, provided that trading on the company’s shares outside the trading halls will be suspended as of the date of its listing. The market said, in a circular, that any trading operation on ADNOC Drilling’s shares, as of that date, is considered void, and the ownership transfer and transfer of shares resulting from these operations will not take place.
This comes after the Abu Dhabi National Oil Company “ADNOC” announced yesterday the end of the subscription for ADNOC Drilling shares, achieving total returns of more than 4 billion dirhams, upon the final settlement of the shares, and the offering coverage exceeded, times the target value, through a significant increase in demand. From individual and institutional investors eligible for subscription, the total demand for the public offering shares reached 127 billion dirhams, or 31 times the target value of the offering.
Al-Hassan Bakr, chief economic analyst at Evest, said: We are talking here about the largest national drilling company in the Middle East, in terms of the size of the rig fleet, as it owns 96 rigs, and has been operating in the market for 50 years, and therefore, it is a 100% guaranteed investment. This was the reason for the great demand for the proposal.
He said that the offering paves the way for other propositions in the coming period, which is a good indication of the improvement of investors’ psychology, which will positively affect the performance of the UAE markets during the coming period, explaining that the listing contributes to providing opportunities for investors to further diversify their investment portfolios, which is Which represents an indicator to attract more foreign liquidity to the UAE markets, in addition to stimulating domestic liquidity.
Devesh Mamtani, Director of Financial Risks, Head of Advisory and Investments at Century Financial, said that the increase in the size of the initial public offering of ADNOC Drilling, to 11% from 7.5%, confirms the presence of strong demand from investors, and a significant increase in subscription across all segments, which was shown The results announced yesterday.
He added that the IPO of ADNOC Drilling is expected to increase the penetration of international investors in the Abu Dhabi Securities Exchange, and diversify the total shareholder base in the index, referring to the high demand by investors, to the temptations offered by the stock exchange, which include flexibility in the minimum share size. Required for stock sales, the promise of lowering, or forfeiting, the listing fee.
After the subscription period ended, the first tranche reserved for individual investors in the UAE was allocated at a rate of 10%, the second tranche reserved for qualified investors from local and international institutions was allocated by 86%, and the third tranche reserved for employees of the ADNOC Group of companies and retired UAE nationals, by 4%. Investors from the first and third tranches will receive a text message to confirm the number of shares allocated to each of them, on September 30, 2021.
ADNOC will remain, after the end of the listing process on the Abu Dhabi Securities Exchange, the majority shareholder in ADNOC Drilling, which amounts to 84%, while Baker Hughes, which entered into a strategic partnership with ADNOC Drilling in October 2018, retains its 5% stake in the company. . Helmreich & Bain owns 1%, through its investment in ADNOC Drilling, which was announced on September 8, 2021.
Increased shares offered
ADNOC had announced an increase in the number of shares offered in the initial public offering of ADNOC Drilling from 1,2 billion to 1,76,000,000 ordinary shares, at a price of 2.30 dirhams, equivalent to 11% of the total capital.
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