Adnoc Drilling Company on Monday announced its intention to proceed with an initial public offering and to list its shares for trading on the Abu Dhabi Securities Exchange (ADX).

7.5 per cent of Adnoc Drilling’s issued share capital, will be included in the offering to individuals and other investors in the UAE and to Adnoc Group Companies employees and Adnoc Group UAE national retirees (as defined in the UAE Prospectus, as part of the UAE retail offering) and to qualified institutional and other investors (as part of the qualified investor offering). Abu Dhabi National Oil Company ( Adnoc  or the Selling Shareholder) retains the right to increase the size of the offering at any time before pricing of the offering.

Adnoc Drilling has 107 rigs, of which 96 rigs are owned and 11 rigs are rented, as of 30th June 2021 and the sole provider of drilling rig hire services and certain associated rig-related services to the  Adnoc Group on agreed contractual terms. Adnoc Drilling provides its customers with a full suite of drilling services, including rig hire services and certain associated rig-related services in Abu Dhabi and oilfield services (such as integrated drilling services, wireline, directional drilling, cementing, pressure pumping, logging and fluids, and hydraulic fracturing).

For the year ended 31st December 2020, Adnoc Drilling had revenue of $2,097.9 million, Ebitda of $959.7 million and profit of $569.0 million. For the six months ended 30th June 2021, Adnoc Drilling had revenue of $1,123.5 million, Ebitda of $499.5 million and profit of $281.6 million.

In line with its 2030 strategy, Adnoc has previously embarked on an ambitious transformation programme to unlock and create value by expanding its engagement with new strategic partners and global investors. To this end, it has developed an overall strategy for the more active management of its asset portfolio and capital to unlock value and drive growth and returns across its entire value chain. This IPO will constitute a further step in Adnoc ’s continued growth trajectory.

Adnoc is fully supportive of Adnoc Drilling’s management and business strategy and intends to remain Adnoc Drilling’s long-term majority shareholder.

Commenting on the launch of the Adnoc Drilling IPO process, Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc Managing Director and Group CEO, said, “I am delighted to announce our intention to float a minority stake in Adnoc Drilling on the Abu Dhabi Securities Exchange through an IPO. This highly compelling offering, in a company with a robust growth trajectory and attractive dividend policy, is open to all citizens and residents of the UAE in addition to international and local institutional investors. Building on the highly successful listing of Adnoc Distribution in 2017, this offering marks another significant milestone in Adnoc’s ongoing journey in unlocking and maximizing value across our integrated asset base.”

Dr. Al Jaber added, “Adnoc Drilling’s planned value creation opportunities, including a major rig fleet expansion and well drilling programme, ideally position the company to take full advantage of emerging opportunities across the upstream value chain. As such, Adnoc will remain a committed, long-term majority shareholder in Adnoc Drilling, as we believe the company’s strong market position ensures it is poised for further growth for the benefit of Abu Dhabi, the UAE and future Adnoc Drilling shareholders.”

Abdulrahman Abdulla Al Seiari, Chief Executive Officer of Adnoc Drilling, said, “As the sole provider of drilling rig hire services and rig-related services to Adnoc Group on agreed contractual terms, we will continue to play a critical role in enabling Adnoc to deliver on its 2030 crude oil production capacity target of 5 million barrels per day and achieving gas self-sufficiency for the UAE. The success of Adnoc Drilling has been built on the dedication of our people and their deep engineering and technical expertise. We look forward to welcoming our new shareholders to share in the growth of Adnoc Drilling, as we seek to list our shares on the Abu Dhabi Securities Exchange.” Offering Highlights · Intention to list on ADX.

Offering size will be 7.5 per cent of Adnoc Drilling’s issued share capital, with Adnoc retaining the right to increase the size of the Offering at any time before pricing of the Offering. All shares to be offered shall represent the sale of existing shares held by Adnoc. Admission of the shares to trading on the ADX (the “Admission”) is expected in October 2021.

The Offering shall be made available to individual and other investors and to Adnoc Group Companies Employees and Adnoc Group UAE National Retirees (as defined in the UAE Prospectus) as part of the UAE retail offering as well as to qualified investors as part of the qualified investor offering. Five per cent of the Offering will be reserved for offer to the Emirates Investment Authority. Details of the Offering Adnoc expects to sell 7.5 per cent of the Company’s issued share capital, with Adnoc retaining the right to increase the size of the Offering at any time before pricing of the Offering.