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ADNOC Drilling, whose share offering received over $34 billion in demand, is expected to be among the 10 largest companies on the Abu Dhabi Securities Exchange, based on a market capitalisation at listing of about $10 billion.
“This important milestone will bolster the expansion and diversification of Abu Dhabi’s equity capital markets and further the development of the UAE’s economy and private sector”, ADNOC said in a statement.
The IPO is the latest move by Gulf oil giants ADNOC and Saudi Aramco (SE:2222) to raise cash from outside investors as they try to diversify sources of income in their oil-dependent economies.
Saudi Aramco listed in late 2019, raising $29.4 billion in the world’s biggest IPO.
ADNOC will continue to own an 84% majority stake in the unit, while Baker Hughes will retain its 5% shareholding. Helmerich & Payne (NYSE:HP) will hold 1% through its IPO cornerstone investment.
ADNOC increased the size of the IPO to 11% of share capital because of oversubscription. It had previously targeted selling a minimum stake of 7.5%.
The sale is the second public flotation of a company owned by the Abu Dhabi oil major after the 2017 listing of ADNOC Distribution, the largest operator of petrol stations and convenience stores in the UAE.
