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ADNOC Drilling is asking for $0.62 a popINTL

ADNOC Drilling is asking for $0.62 a pop

Starting today, UAE retail investors and qualified domestic and international institutional investors will be able to own a stake in one of MENA’s largest drilling companies. The Abu Dhabi National Oil Company (ADNOC) will list on the Abu Dhabi Stock Exchange (ADX) on October 3 and has officially started offering its shares for the price of $0.62 apiece (less than the cost of an iced latte in Dubai mall). Investors gotta act quickly, though, since the offer is valid up until September 26.  

ADNOC’s valuation implies a whooping equity value of $10b. This valuation comes after the oil-drilling giant posted excellent results in 2020, hitting $2.1b in revenue, with a profit of $569m. ADNOC’s decision to go public follows an aggressive growth strategy to diversify its investor base and unlock new sources of cash from its infrastructure base. 

why it matters

The funds raised from the IPO will help ADNOC achieve the desired expansion of its production capacity from 4 to 5 million barrels per day by 2030.