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ADNOC boosts size of drilling device IPO to $1.1 billion

A normal check out of ADNOC headquarters in Abu Dhabi, United Arab Emirates Could 29, 2019. REUTERS/Christopher Pike/File Picture

DUBAI, Sept 22 (Reuters) – State oil giant Abu Dhabi National Oil Co (ADNOC) has elevated to 11% of share cash the size of the original general public offering (IPO) of its drilling device, ADNOC Drilling, due to the fact of oversubscription, the agency said on Wednesday.

ADNOC experienced beforehand targeted a minimum amount stake of 7.5% in the IPO of ADNOC Drilling, at 2.3 dirhams ($.6262) for every share.

In a assertion it stated the price had not adjusted but the selection of ordinary shares made available was elevated to 1.76 billion from 1.2 billion, which would correspond to a $1.1 billion transaction, according to Reuters calculations.

“The new supplying size was established by ADNOC, as the marketing shareholder, centered on substantial trader need and the sizeable oversubscription across all tranches,” it explained.

“The enlarged giving will help a broader investor foundation to receive exposure to ADNOC Drilling’s very appealing value proposition.”

ADNOC will continue to have an 84% greater part stake in the unit, even though Baker Hughes will keep its 5% shareholding.

The IPO subcription period of time will conclusion on Thursday for United Arab Emirates retail investors and on Sunday for domestic and worldwide institutional traders.

Listing is expected on or about Oct. 3, ADNOC explained.

($1=3.6728 UAE dirham)

($1=3.7502 riyals)

Reporting by Davide Barbuscia Enhancing by Clarence Fernandez

Our Expectations: The Thomson Reuters Trust Principles.