It seems like only two weeks ago, government-backed ADNOC (Abu Dhabi National Oil Company) was looking to list a 7.5% stake in its drilling subsidiary. Well, courtesy of the oversubscription it faced from investors, yesterday ADNOC announced that it’ll be increasing that stake to 11%.
The initial 7.5% priced 1.2b shares at $0.63/share, bringing the total listing proceeds to $750m. ADNOC upped the ante now with its new 11% pricing 1.76b shares at the same $0.63/share, but bringing the total listing proceeds to almost $1.1b. The IPO values ADNOC Drilling at $10b.
Why it matters
The IPO is expected to play a key role in helping Abu Dhabi's 2030 goals of reaching self-sufficiency in gas production. The deal comes as the second IPO from ADNOC as it listed its distribution arm in 2017.
