ADNOC raises $935 mln from 5.5% additional stake sale in drilling unit
23/05/2024 07:46
DUBAI, May 23 (Reuters) - Abu Dhabi National Oil Company
(ADNOC) ADNOCDRILL.AD raised $935 million from an additional
5.5% sale of shares in its drilling unit to institutional
investors, it said in a statement on Thursday.
The transaction, which was announced on Wednesday,
constitutes a sale of 880 million shares priced at 3.90 dirhams,
at a 5.6% discount to the closing price of 4.13 dirhams on May
22.
It follows ADNOC Drilling's IPO more than two years ago, when
the company priced shares at 2.3 dirhams a piece, raising $1.1
billion. The stock soared about 30% on its debut.
ADNOC said the transaction will increase the drilling unit's
free float to 16.5% and stands as the biggest accelerated
bookbuild of a publicly listed company in the UAE.
The energy firm will retain a majority 78.5% shareholding in
its drilling unit and has agreed to a restriction from selling
further shares for a period of six months, the statement said.
Increasing ADNOC Drilling's free float is expected to lead
to the company's inclusion in the Morgan Stanley Capital
International (MSCI) Emerging Market Index, ADNOC said. That
could happen at the next quarterly index review subject to ADNOC
Drilling meeting criteria, it added.
Egyptian investment bank EFG Hermes HRHO.CA , First Abu
Dhabi Bank FAB.AD , Goldman Sachs GS.N and JPMorgan
Securities JPM.N acted as joint global coordinators and
bookrunners for the offering.
The settlement of the offering is expected to take place on
or around May 28, ADNOC added.
($1 = 3.6726 UAE dirham)
(Reporting by Yousef Saba, Rachna Uppal and Federico Maccioni,
editing)
((Federico.maccioni@thomsonreuters.com; +971 527370852;))