Abu Dhabi National Oil Company (Adnoc) has announced the successful completion of the bookbuild and public subscription process for the Initial Public Offering (IPO) of its Adnoc Drilling Company.
It confirmed the previously announced increased offering size from 1.2 billion ordinary shares to 1.76 billion ordinary shares (offer shares), equivalent to 11% of the total issued share capital, and an offer price of AED2.30 per ordinary share, resulting in gross proceeds of over $1.1 billion to Adnoc, upon settlement.
The IPO was multiple times oversubscribed, with significant demand from UAE Retail Investors and Qualified Institutional Investors. Total gross demand for the IPO amounted to over $34 billion, implying an oversubscription level in excess of 31 times in aggregate.
Following the completion of the subscription period, the size of the first tranche (reserved for UAE Retail Investors) was set at 10%; the size of the second tranche (reserved for local, regional and international Qualified Institutional Investors) was set at 86%; and the size of the third tranche (reserved for Adnoc Group Companies’ Employees and UAE National Retirees) was set at 4 percent.
Investors from the First and Third Tranches will receive an SMS confirmation of their respective allocation on 30th September, 2021.