ADNOC Drilling, a subsidiary of Abu Dhabi's national oil company, is to list on the stock exchange

Oil company hopes to raise nearly Dh750 million through ADNOC Drilling
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Abu Dhabi National Oil Company (ADNOC) is seeking to raise approximately 2760 million dirhams through its subsidiary ADNOC Drilling.

The oil company is offering a 7.5 per cent stake in the shares of its subsidiary for initial public offering on the Abu Dhabi Securities Exchange. ADNOC will sell a stake in ADNOC Drilling at Dh2.3 ($1 equals 3.67 dirhams) per share, raising at least $750 million.

ADNOC Drilling shares will be available to investors in the United Arab Emirates from 23 September and will be available to local and international investors on 26 September. 

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The sale is the second IPO of an ADNOC-owned company, following the 2017 listing of ADNOC Distribution, the UAE's largest operator of petrol stations. "This offering marks another important milestone in ADNOC's ongoing journey to unlock and maximise value across our integrated asset base," said Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and head of the oil company. ADNOC Drilling owns 107 rigs, of which 11 are leased. The branch offers a full suite of drilling services that have enabled it to achieve high profits. At the end of 2020 ADNOC Drilling had revenues of USD 2,097.9 million.

"We will continue to play a key role in enabling ADNOC to achieve its 2030 crude oil production capacity target of 5 million barrels per day and achieve self-sufficiency for the UAE," said Abdulrahman Abdulla Al Seiari, chief executive officer of ADNOC Drilling. "Our success has been built on the dedication of our people and their deep technical engineering expertise. We welcome our new shareholders to share in the growth of the company," he added. 

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The listing of ADNOC Drilling comes as part of Abu Dhabi's plan to revive public offerings on its local bourse and trigger transactions through measures such as lower listing fees. Also, like other Gulf oil companies such as Saudi Aramco, the deal will raise cash from outside investors while diversifying revenue sources in their oil-dependent economies. 

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The UAE is the third largest oil producer in the Organisation of the Petroleum Exporting Countries (OPEC). However, it is using its wealth to expand its economy away from oil. Abu Dhabi is looking to boost other sectors such as tourism, transport and international trade.