ADNOC intends to offer a minority stake in ADNOC Drilling's shares to the public

ADNOC provides, through the proposed offering, an attractive investment opportunity.

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The Abu Dhabi National Oil Company “ADNOC” announced yesterday its intention to offer a 7.5% stake in the shares of “ADNOC Drilling” for public subscription on the Abu Dhabi Stock Exchange, pointing out that the subscription will be opened to citizens and residents in the UAE, and local investment institutions. and international, in what is expected to start on September 13, 2021.

Through this proposed offering of a minority stake in ADNOC Drilling, ADNOC provides an attractive investment opportunity that allows investors to benefit from the continuous development and strong growth achieved by ADNOC Drilling, which is a major component of ADNOC's operations and the value chain of hydrocarbon resources. in Abu Dhabi.

ADNOC Drilling also has a long-term contractual relationship with the ADNOC Group companies in the field of exploration, production and development, which ensures the continuity and stability of its operations in various circumstances.

ADNOC Drilling is the largest national drilling company in the Middle East in terms of the size of the fleet of platforms and equipment, with a total of 96 rigs, onshore and offshore, and rigs dedicated to artificial islands.

public offering

The Minister of Industry and Advanced Technology, Managing Director and CEO of ADNOC and its group of companies, Dr. Sultan bin Ahmed Al Jaber, said that in line with the leadership’s vision of working to achieve the maximum possible value from oil and gas resources, we are pleased to announce our intention to offer a minority stake in ADNOC Drilling. » On the Abu Dhabi Securities Exchange, through an initial public offering.

He added: "This offering provides investors with an important opportunity to invest in a company characterized by strong and stable performance, promising opportunities for long-term growth, and an attractive dividend policy, knowing that it will be available to citizens and residents of the UAE and investors from international and local institutions."

Al Jaber continued: “This step comes after the successful listing of (ADNOC Distribution Company) shares in 2017, which represents an important step in ADNOC's approach to improving performance, providing and enhancing value from its world-class assets.

We are confident that ADNOC Drilling’s plans to establish and enhance value and expand its fleet and services will ensure that new opportunities in the value chain are taken advantage of in various aspects of the sector.”

He stressed that "ADNOC Group" will remain the owner of the majority stake, and a committed shareholder in the long-term in "ADNOC Drilling" because we are confident that its position and strong presence in the market will ensure further growth, which will reflect positively on the UAE, Abu Dhabi and future shareholders in the company.

subtraction operation

According to the timetable and the offering process, the size of the offering will be 7.5% of the capital of ADNOC Drilling, and all the offered shares will be sold from the existing shares owned by ADNOC, while the shares are expected to start trading on the Abu Dhabi Stock Exchange in October 2021.

According to the statement, the offered shares will be made available to individuals and other investors within the framework of the offering to individuals in the UAE, as well as to qualified investors within the framework of the offering to qualified investors, and 5% of the offered shares will be reserved for the benefit of the Emirates Investment Authority.

The statement confirmed that all shares will be offered by ADNOC, which owns 95% of ADNOC Drilling's capital, before the offering.

ADNOC will receive the net proceeds of the offering, pointing out that the offering process will allow ADNOC to reduce part of its share in order to manage and improve its asset portfolio more effectively, provide new investment opportunities in various aspects of its business, increase the liquidity of trading in shares and enhance its position in the community. International investment.

ADNOC will also continue to own the majority of ADNOC Drilling's capital after the offering, and Baker Hughes Holding Company, which owns 5% of ADNOC Drilling's capital prior to the offering, will not offer any shares in the public offering.

«ADNOC Drilling»

The qualitative leap witnessed by ADNOC Drilling contributed to its development into a company that provides integrated drilling services, raising the efficiency of its operational operations in the field of drilling wells in the onshore and offshore areas. During the period between 2018 and May 2021, the company was able to deliver more than 180 wells, increasing efficiency by about 50%, and savings of more than 767 million dirhams ($ 210 million).

ADNOC Drilling currently has a team of 8,000 employees, and is primarily committed to achieving diversification and balance in all parts of the company, and to strengthening safety, health and security management systems, through continuous improvement with the aim of achieving a charter of 100% health, safety and environment.

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