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Oil Giant ADNOC sells a minimum 7.5% stake in Abu Dhabi IPO

This is the second public flotation of the Abu Dhabi owned oil company

Abu Dhabi owned oil giant Abu Dhabi National Oil Company (ADNOC) recently announced that they are selling a minimum 7.5 percent stake in an initial public offering (IPO), according to media reports.

The company also released a statement, saying, “Offering size will be 7.5 percent of ADNOC Drilling’s issued share capital, with ADNOC retaining the right to increase the size of the Offering at any time before the pricing of the offering.”

This is also the company’s second public flotation owned by the parent ADNOC, in 2017, the company listed ADNOC Distribution ADNO.AD, the largest operator of petrol stations and convenience stores in the United Arab Emirates.

ADNOC is one of the largest drilling companies in the Middle East by fleet size. It has 107 rigs as of June 30, 96 of which are owned. Recently, the company also announced that the size of the IPO could be increased at any time before the offer is priced. The IPO will be open to individuals and other investors in the UAE and to ADNOC Group Companies Employees and ADNOC Group UAE National Retirees and to qualified institutional and other investors.

The oil giant will continue to own 95 percent of ADNOC Drilling’s share capital post IPO. Till the end of 2020, ADNOC Drilling had revenue of $2.09 billion, EBITDA of 959.7 million and profit of $569 million. During the first half of 2021, the driller had revenue of $1.12 billion, EBITDA of $499.5 million and a profit of $281.6 million.

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