Abu Dhabi, May 23rd – ADNOC Drilling has successfully completed a highly sought-after institutional share placement, raising a hefty $935 million. This strategic move not only injects fresh capital but also paves the way for a potentially significant market inclusion, solidifying ADNOC Drilling’s position as a major player in the energy sector.
Investor Frenzy Fuels Demand: The offering of 880 million shares attracted overwhelming interest from institutional investors across the GCC and internationally. This strong response reflects the confidence in ADNOC Drilling’s impressive growth trajectory since its IPO.
Price Reflects Confidence: The shares were priced at AED 3.90 per share, marking a significant 70% increase over the initial public offering price. This jump in price further underscores the bullish sentiment surrounding the company’s future prospects.
Free Float Takes Flight: The successful placement boosts ADNOC Drilling’s free float to 16.5%. This increased availability of shares is likely to attract a wider range of investors, further diversifying the company’s investor base and potentially leading to increased liquidity.
Setting Sail for MSCI Inclusion: The enhanced free float is a crucial step towards potential inclusion in the prestigious Morgan Stanley Capital International (MSCI) Emerging Market Index. Inclusion in this index would significantly broaden awareness of ADNOC Drilling’s unique value proposition and attract even more global investment.
ADNOC Remains a Steady Anchor: While the placement brought in new investors, it’s important to note that ADNOC retains a majority 78.5% shareholding. This continued commitment from ADNOC not only provides stability but also highlights their long-term confidence in ADNOC Drilling’s strategic importance within the Abu Dhabi financial market.
Looking ahead, ADNOC Drilling appears well-positioned for continued success. With a substantial capital injection,a potentially expanded investor base, and the possibility of MSCI inclusion, the company is well on its way to achieving its ambitious growth goals.
