ADNOC completes book building for drilling unit IPO, raising more than $ 1.1 billion


An Emirati is seen near the ADNOC logo in Ruwais, United Arab Emirates on May 14, 2018. REUTERS / Christopher Pike / File Photo

DUBAI, Sept. 27 (Reuters) – State-owned oil giant Abu Dhabi National Oil Co (ADNOC) has finalized the book-building for the initial public offering (IPO) of ADNOC Drilling, raising more than $ 1.1 billion in dollars, he announced Monday.

The supply was oversubscribed, with total gross demand reaching more than $ 34 billion, he said in a statement.

“Once the settlement is reached, ADNOC Drilling’s IPO will be the largest ever listed on the ADX (Abu Dhabi Securities Exchange), further strengthening the capital markets of the United Arab Emirates and Abu Dhabi”, did he declare.

A tranche for UAE retail investors has been set at 10% and a tranche for local, regional and international institutional investors at 86%, with the remaining 4% to be allocated to ADNOC employees and retirees in the Arab Emirates. United.

Registration was expected on October 3, ADNOC said.

ADNOC will continue to hold an 84% controlling stake in the unit, while Baker Hughes will retain its 5% stake. Helmerich & Payne will own 1% thanks to its key investment in the IPO.

ADNOC increased the size of the IPO to 11% of the share capital, he said this month, due to oversubscription. It previously aimed for a minimum stake of 7.5%.

The sale is the second IPO of a company owned by the Abu Dhabi oil major after listing in 2017 of ADNOC Distribution, the largest operator of gas stations and convenience stores in the United Arab Emirates.

ADNOC and Saudi Aramco in neighboring Saudi Arabia are seeking to raise funds from outside investors as part of plans to diversify sources of income in their oil-dependent economies.

Reporting by Davide Barbuscia; Editing by Edmund Blair

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