UAE’s ADNOC plans to sell 7.5% of its drilling unit in IPO

Abu Dhabi National Oil Company (ADNOC) is planning to sell a 7.5 percent stake in ADNOC Drilling, which will be the UAE oil company’s second initial public offering (IPO) as part of its goal to monetize assets and spend on expansion initiatives.

According to the statement, ADNOC will sell shares in ADNOC Drilling on the Abu Dhabi Securities Exchange, with the option to expand the size of the IPO at any point before its pricing. ADNOC Drilling shares are expected to begin trading in October, subject to market circumstances and regulatory permissions in the UAE.

“The share offering is available to individuals and other investors, ADNOC Group employees, retirees of the national oil company as part of the retail offering as well as to qualified investors,” as per the statement.

“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.”

In 2018, American international industrial service company Baker Hughes purchased a 5 percent stake in ADNOC Drilling, valuing the company at about $11 billion at the time. As part of the IPO, Baker Hughes will not sell its stake. Further, ADNOC will remain as the primary shareholders, following the float.

“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 Mr. Abdulrahman al-Seiari, CEO of ADNOC Drilling.

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