Adnoc raised $935 million by selling 880 million additional shares in its drilling unit to institutional investors after recording strong demand for the offering.
The share sale representing 5.5 per cent of Adnoc Drilling’s total issued share capital registered robust demand from investors in the GCC and globally, the company said in a statement on Thursday to the Abu Dhabi Securities Exchange, where its shares are traded.
The shares were sold for Dh3.90 ($1.06) each, nearly 70 per cent above the initial public offering price of Dh2.30 per share and a 5.6 per cent discount to the company’s closing price on Wednesday.
The company's shares were trading 3.87 per cent higher at Dh4.29 per share at 11.30am UAE time on Thursday, after closing at Dh4.13 the previous day.
The latest offering will increase Adnoc Drilling’s free float to 16.5 per cent, with its parent retaining a majority stake in the company.
A higher free float is expected to help Adnoc Drilling to be included in the Morgan Stanley Capital International Emerging Market Index.
The MSCI Emerging Markets Index is a broad index that includes a large number of stocks from 24 emerging market countries, covering about 85 per cent of the total market capitalisation of these countries.
EFG Hermes UAE, First Abu Dhabi Bank, Goldman Sachs International and JP Morgan Securities acted as joint global co-ordinators and joint bookrunners on the new offering from the company.
This additional stake sale is taking place more than two years after Adnoc raised $1.1 billion from an IPO of its drilling unit.
“The significant interest our offering generated from both domestic and international investors is testament to Adnoc Drilling’s growth trajectory since its IPO and its exciting future growth potential,” Khaled Al Zaabi, group chief financial officer of Adnoc, said.
Adnoc Drilling, the largest national drilling company in the Middle East by rig fleet size, reported a 26 per cent increase in its first-quarter profit last week.
It also said at that time that it was awarded a $1.7 billion contract by Adnoc to provide drilling services for the recovery of unconventional oil and gas resources.
The Adnoc subsidiary has set up a company called Turnwell Industries, which will fulfil the contract and explore potential future opportunities in unconventional resources, the company said.
Adnoc, responsible for most of the UAE's crude production, is working to develop its unconventional reserves as it looks to reach an output capacity of five million barrels per day by 2027. It can already produce up to 4.85 million bpd.
Results
5.30pm: Maiden Dh165,000 (Turf) 1,600m; Winner: Al Battar, Mickael Barzalona (jockey), Salem bin Ghadayer (trainer).
6.05pm: Maiden Dh165,000 (Dirt) 1,200m; Winner: Good Fighter, Richard Mullen, Satish Seemar.
6.40pm: Handicap Dh185,000 (T) 1,200m; Winner: Way Of Wisdom, Tadhg O’Shea, Satish Seemar.
7.15pm: Handicap Dh170,000 (D) 2,200m; Winner: Immortalised, Tadhg O’Shea, Satish Seemar.
7.50pm: Handicap Dh185,000 (T) 2,000m; Winner: Franz Kafka, James Doyle, Simon Crisford.
8.25pm: Handicap Dh185,000 (D) 1,200m; Winner: Mayadeen, Connor Beasley, Doug Watson.
9pm: Handicap Dh185,000 (T) 1,600m; Winner: Chiefdom, Mickael Barzalona, Salem bin Ghadayer
UAE currency: the story behind the money in your pockets
Bharat
Director: Ali Abbas Zafar
Starring: Salman Khan, Katrina Kaif, Sunil Grover
Rating: 2.5 out of 5 stars
About Karol Nawrocki
• Supports military aid for Ukraine, unlike other eurosceptic leaders, but he will oppose its membership in western alliances.
• A nationalist, his campaign slogan was Poland First. "Let's help others, but let's take care of our own citizens first," he said on social media in April.
• Cultivates tough-guy image, posting videos of himself at shooting ranges and in boxing rings.
• Met Donald Trump at the White House and received his backing.
Schedule
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The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Mica
Director: Ismael Ferroukhi
Stars: Zakaria Inan, Sabrina Ouazani
3 stars
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Get Out
Director: Jordan Peele
Stars: Daniel Kaluuya, Allison Williams, Catherine Keener, Bradley Whitford
Four stars
Jetour T1 specs
Engine: 2-litre turbocharged
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Torque: 390Nm
Price: From Dh126,000
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The bio
Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.
Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.
Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.
Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.
Killing of Qassem Suleimani
BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities
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